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JSS, I like to use an 8-18-6 but I can tell you that the crosses and the histogram are virtually the same as 12-26-9 I also like to see volume bars and when there is a jump in volume that pushes price to highs, after there is some profit taking (like a hammock) I watch the volume that comes into the retest of the most recent swing high, if it's not higher, tight stops. I am still studying the FDAX with some other indicators.
can you post a chart? I don't oppose amount of indicators used, but personally I believe that W & M price formations + 1 minute histogram provide enough info to be in & out and come out on top EOD , whenever EOD might be, be it whole day or half hour.
Short 1 +9 I think 8100 likely intermediate target for now, waiting for another opportunity, histogram too radical to re-short, need to see some range reduction first Long 1 might reverse trade with 3 lots +2 for now Short 3 -3.5
Short 3 -3 Long 3, bottom fishing...towards 8180 -3.5 Long 3 (-49 Gross so far) b/even Long 3 come on, next gear Scaled out 2 lots +14.5
regardless of whethe using 12-26-9 or 8-18-6, the biggest difference between MACD and the MACD I run is that I run a percent based MACD. WHy? because if you take the time to look at extremes in the MACDPC (PC for percent) then you can recognize envelopes of normalcy based on percentage move, not nominal price movement. The macdpcvar1000 in the chart is just a regular MACD, but I have divided the measures by the longer MA (26 xaverage for 12-26-9 and 18 for 8-18-6) since the intraday charts movements are so small, I take the time to multiply the lines by 100000 just to bring the numbers up to whole numbers. It really doesn't matter whether you use a multiplier to bring the numbers up to whole numbers or not, if you have a percent based macd in your charting tools, all you have to do is eyeball the chart and put a horizontal line on it at extremes. What happens when you do this? You can see that certain levels above and below the -0- line can be predictive of movements in price. An extreme reading in either direction is showing you enthusiasm for either buying or selling. In my brief studies of the FDAX, It looks like on the 1 minute bars, the +70 and the -70 level for the slower moving macd line are predictive of future price movement. If the the macd line (slower line marked in thin red in first sub-chart) breaks above or below +/- 70 then that suggests extreme enthusiasm. My observation is that once you get a reading of extreme like this, there should be another move in that same direction (after a period of consolidation) does it work everytime. NO. Is it worth looking at. I think so. I have had these "70" lines on the FDAX chart for a few weeks and here is the simple way I view them. If there is a reading above the 70 line, bullish, but once the histogram drops below -0-, then the markets are consolidating the gains. WHen I see a reading above 70 I expect the price range at that swing high to at least be retested. As long as the macd lines remain above -0-, then when histogram crosses up through -0- it's a buy. Understand, these percent based MACD lines move exactly the same as the regular macd, so if you want to use the regular MACD and pick a "line near the highs" or a line near the lows, you can do that, but I like percent based because it is absolute. The price lines are most likely a function of price volatility so they could/should change over time, but basically, percent based is giving you envelopes of enthusiasm, and enthusiasm tends to linger and cause another move in the same direction. I am running out of time, JSSPMK, and I have to prepare for the US market so I can't really take much more time. I've attached a chart, obviously action over the past few trade days has been kind of exagerated, but there are examples of these measurements. Lines on the price chart are 21 period Hull moving average (changes color from red to blue) and the thick blue line is just a 40 period exponential moving average. You can look at this on your own charts and discover relationships. Obviously in a bull market, retests/undercuts of the swing lows commensurate with -70 readings might not occur. Overall, I maintain a positive view for prices as long as the MACD lines are above -0-. Especially after a macdpc > +70. Readings above the -0- line that constantly put in higher lows you're in a bull run. After a move above 70, I expect some consolidation. As long as there has been a move above 70, I would be inclined to buy a move above the -0- line by the histogram. A reading (thin red, slower moving macd line) above 70, and I expect to see (at some point, a retest and or a breakout above the price range of the price bar on the +70 reading. If there is a negative divergence in the MACD lines at the time of the retest, or/and if the volume generated is decidedly lower than the volume at the previous swing high, I would use a tight stop. After a +70 reading, I also look at the first test of the -0- line (from above) of the regular macd lines as a potential for a bounce. Watch the histogram at that time. On -70 readings, it can tag and turn up and then no retest of the price range at the time of the -70 reading needs to occur. Also the more time below -70, the more bearish it is and there will likely have to be an undercut of the previous swing lows and you will probably have to see a positive divergence accompanied by volume capitulation, but if price is well below the swing low of the previous -70 reading, the new -70 reading does not necessarilly have to represent a positive divergence. Sellers have sold, price has undercut the previous swing low because MORE sellers have sold. How many can be left? watch the volume for positive divergence (less volume). Additional sidelight on volume, especially on 1 minute charts), first volume spike in a decline usually not at lows. In 1 minute charts, a huge volume spike on sharp decline in price is often followed by lower prices and another (smaller volume) capitulation. In terms of volume on the AFTER a negative 70, First test of -0- line by the macd is often a failure and prices have to consolidate and/or retrace to retest swing low. That's when you want to look for positive divergences bewteen price and macd lines. but if price just consolidates sideways, wait for histogram to do a humpty-dump. that is a move above the -0- line while price cannot exceed most recent recovery high, but then the next move above the -0- line by the histogram with a higher low than the first retracement and you're probably off to the races for an intraday short-covering lift. I've run out of time. If MACD is below -0- and histogram crosses below -0- negative. If macd is abov -0- and histogram crosses above -0- psoitive.