The order of things confuses me a little... What happens if the 2M comes back down for a zero line dip, while the 10m is below the zeroline? does that mean a full 20 tick target? What time is it on this Friday afternoon anyways...?.... or... what if the 10m ma crosses up above the zero line and the 2m ma re-crosses up while maintaining above the zero line...?? hours...(cst) (not est..this is CME duh! not the YM CBOT) http://www.cme.com/trading/prd/trading_hours_RL711.html Michael B. P.S. It would be easier if these charts synched up...but I guess this is a choppy environment...which the charts are confirming.
The 2m zero line crosses are the safest...use the 10m for target interpretaion. Follow the 10 minute time stop... This is too easy... I got to get to work and complicate this now... I will use the ADX for stand aside trades....
electric, This is a typical ER2 Friday, although worst than most. Usually good moves occur within 1.5 hrs of open on a Friday then the remainder of the day sucks.
I am going to stick with "2 minute chart zero line crosses" in the beginning and use the 10 minute chart for target interpretation...if the ADX does not say stand aside...(I don't really know about the ADX in this system yet, Perhaps just scalping when the 10 minute says to is good...)
mtwokay, May I ask what periodocity chart this is on...10 minute? or 2 minute? It must be a longer timeframe if you were out all morning... I use a 12 unit ADX and stay out when it's below 17 Michael B.
electric, My method is similar to trader28 but I donât use minute charts. You can apply the same technique to tick and volume charts. I personally use three volume charts: 7200V for longer term trend, 1800V for trading and 450V for entry. Using the 1800V youâll get 3 or 5 good trades per day. If I have time today Iâll post a few chart pics. I have ADX on all three time frames and use it to avoid chop. When ADX drops below 17 on the 1800V, stay out. However, if ADX is below 17 but trending up, i'll consider a trade. I just created a 2min chart on ER2 and ADX(12) looks pretty good. If it's below 17, stay out.
As usual ET is the best community on the internet. (could you imagine of how honored and proud I am to be a moderator on the #1 site?) This thread is a very helpful thread to many, I am sure it must be. I must live with this method for some days to see if it 'Fits" me. So far it seems like a winner. I am not an advocate of using indicators in trading, but as long as the ER trades with these ranges...it seems ok.. Thanks for converting to minute charts for my sake...I do not have candlesticks built with volume available to me. Michael B.
When the 2 min MACD MA crosses above the zero line, the faster line will cross first, does this signal a long ? Or do both the fast and slow MA lines need to cross above the zeroline before initiating a long ?
Apparantly the last short (1/2 target) stopped out near breakeven on the time stop..ADX was near 30 on the 2M...I had a power failure and could not paper trade it.. I am using the close of the fast line on the MACD zero line cross for a sig...I do not know if this is correct, but I will end up testing everything...(I have not experimented with the 9sma yet for early indication) There is about 2 hrs. to go. Michael B.