I've been having good luck with ER2 for the last week or so. Looking over things from earlier today there were some signals that immediately went bad right after entry, not much I can do about that but get out quick. I did miss some opportunities, just didn't see them at the time but are jumping out at me now (isn't hindsight great ). Looked over the YM chart for the day, looks like it would have been a great day to trade that one! I will have to keep an eye on it for a little bit to get the feel for how it moves. I started watching this strategy casually a little over a month ago and it looked interesting. Been watching it really closely the last week and really like it. I'll keep plugging away along with you guys and see what we can do.
this is the best thread I ever read, it took me a week to read to this point. cost me some dough too! I was screwin up right and left not having figured this thing out until Friday, which was ugly in the pm. Regarding trader28's new scalp with bb, maybe trader28 liked the BB idea Snarly. I sure did. I really like following BeerB's attitude on this simple method, he was sceptical at first, took a look, asked a bunch of questions, got excited about a day later and sounds like he's busy countin his money now. I also agree with BeerB's "take 10 pts YM in the PM" Afternoon chop has ruined profitable mornings for me at least 500 times. Snarly, you are right on with trying to fade fast markets, I kick butt swingin inside consolidations and loose on the big trending days. Never seen a trend I wouldn't fade, course I lost $10k last year. The only thing I should be fadin is my own impulses. Im using quote.com and have no 2 min charts but the 1 min macd is workin great, I cleared 84 pts today. I took the BO of the overnite high and three more trades long at the 10 min sma. I used steep one min trendlines to move my stop. 1 minute bollinger might be the right slope. Anyhow, what are you folks lookin at around the open tomorrow. Consolidation day? The price is right at the 10 min X 9 sma, maybe we'll see a little duck below the sma and buy the cross back over if confirmed with the zlc? that's what poped this morning, there was a tiny gap, didn't notice except with a bad fill! Anyway, if this system keeps working I'm gonna fly to Austrailia and give Trader28 a big kiss next year! Now that I've caught up I'll keep in touch tomorrow. My goal is not to fu what I got going today.
Is anyone interested in trading this system/exchanging ideas about this system together in realtime via an IRC channel or so? Just an idea. Would be helpful for me so maybe also for others. regards, Ivo
Just reading back over this thread, can anyone tell me why T28 doesn't just watch the 12 & 26 bar EMAs and trade on the crossover ? As far as I can see, that's exactly what the system does. Apologies if I'm being very dense.
BB, the point I was making is that a cross of the zero line on the MACD is defined as a cross of the 2 EMAs, is it not ? See the 2nd paragraph below: "MOVING AVERAGE CONVERGENCE-DIVERGENCE INDEX (MACD) The MACD is a two-component indicator based on two exponential moving price averages. Because of the early signals, which can be derived from this indicator, it is regarded by many analysts as helpful in the trading of stock options. MACD is more classic version of the Price Phase Indicator. The first component of the MACD is a line, which represents the difference between two moving averages; each computed for a different period of time. This first component is called Price Phase Line. The second component, which is called the Signal Line, is an exponential average of the first component. The two lines are charted together on the same time scale. If you have not changed the default color settings, the Price Phase Line is green and the Signal line is purple. You can also determine which line is which by the position of the lines during periods when a definite trend is established. The Price Phase Line is the upper line during upward price movements and the lower line during downward movements. The Signal line, being an average of the Price Phase Line, is the lower line during upward moves and the upper line during downward moves. As a general rule, it is considered bullish when the Price Phase Line is rising and is above the Signal Line. Conversely, it is bearish when the Price Line is falling and is below the Signal Line. Buy and sell signal are generated by the crossing of the two lines. In general, a buy signal occurs when the Price Phase Line crosses from below to above the Signal Line. A sell signal is indicated when the Price Phase Line crosses from above to below the Signal line. An example of a buy signal can be seen on the chart for International Flavors & Fragrances (IFF). The stock moved sideways from September through late October of 1994. At the same time, the MACD was making higher lows. On October 26, the Price Phase Line crossed above the Signal Line and continued to rise. This proved to be an excellent buying opportunity. Because of its smoothed nature, this indicator can be helpful in highly volatile markets such as the options market. Although generally less effective during narrow, trendless markets, it provides good signals during widely swinging trading ranges and at the conclusion of strong trends. MACD is especially valuable for its ability to signal a turnaround following a sharp decline. In this situation, divergences are particularly significant and often predate important market bottoms. Divergences pertain to trends and occur when the trend of price action and the trend of an indicator are in opposite directions. In addition to trend breaks, divergences, and Signal Line crossing, it is important to watch for overbought and oversold levels. When the MACD rises above a certain level, the ticker is in an overbought region and reversal is likely. The same is true in the oversold direction."
Mo06 I understand what your saying but for me the relation of the slopes, etc. to the zeroline is a critical factor and is much easier, for me at least, to see on a separate space.