Simple Profitable Method

Discussion in 'Technical Analysis' started by trader28, Sep 6, 2006.

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  1. jimns

    jimns

    Sean

    Not sure if you're asking how T28 uses the two MACDs as signals or if you're asking how I superimpose two MACDs on one graph.

    Attached is my 2 min ER2 chart for this afternoon set up for T28's SPM - Two triangular moving averages, a 3 period and an 8 period, both displaced two periods to the right (that's a -2 in TradeStation (TS) and a +2 in T28's platform) - and a standard 2 min MACD (12, 26, 9).

    BTW - don't forget we shifted to ER2's June contract this morning.

    On top of the chart I have superimposed a 10 min ER2 but made its pricing data invisible (that's a TS option). On the subgraph below is a 10 min MACD (dotted lines) overlaid onto a 2 min MACD (solid lines) subgraph. That's the only reason I needed the invisible 10 min chart - so my subgraph could calculate the 10 min MACD.

    Remember, the 10 min MACD really only plots a point every 10 minutes - so the dots connecting two 10 min dots together are just artifacts of the fact that this is all being plotted on a 2 min subgraph.

    Now, as to how T28 uses them - he looks for 2 min MACD xovers and zero line crosses (ZLCs), ideally headed toward the 10 min MACD.

    The MACD consists of a 9 period moving average (MA) and a 12/26 slower MACD. When the MA crosses over the MACD he waits for a MA ZLC and then goes long or short depending on the MACD2's direction. Ideally, the MACD2 is moving toward the MACD10 though I gather he's not always that picky.

    After the ZLC he'll trade MACD xovers in the same direction. But he won't trade a MACD xover in the other direction until it's followed by a ZLC. And so on . . . Again, the only purpose of the 10 min MACD is to lend support to the strength of the move but I take it that trading toward the 10 min MACD isn't cast in concrete - depends on how he's feeling about it I guess.

    On the top side, he's hoping for a nearby crossover of the TMA3+2 and TMA8+2 as well as some price action around those TMAs that'll confirm the trigger - though those aren't base elements of the SPM. Nor are exits defined - that's your call.

    Finally, he stays up late, drinks a lot, and screws around with someone named Mrs. Hershey to keep his trading chops up - that's about all I know.

    How'm I doin' T28?? Am I gettin' close?

    jimns
     
    #2471     Mar 8, 2007
  2. She's one damn fine sugar mommy
     
    #2472     Mar 8, 2007
  3. jimns

    jimns

    Sean

    Here's a TS radar screen setup I cobbled from a John Carter book (Mastering the Trade). It gives me a lot of info about what Mr. Market is doing but you know, it's honestly not all that useful. That's because this stuff doesn't lead the ER2 - the ER2 tends to lead it. Still, I like it when the TRIN, the PC, and the TICK all line up with my ER2 SPM trade but I don't hold my breath while waiting for that to happen.

    By the way, I better say again - I'm only paper trading the SPM so far. In particular, I haven't got my exits worked out to my satisfaction and I'm still playing with $ management strategies.

    So don't try to take my strategies or comments to the bank. It's T28 who has this stuff down. I'm just another ardent disciple drinking his Koolaid.

    jimns
     
    #2473     Mar 8, 2007
  4. jimns

    jimns

    Snarly

    Don't forget most of the March ER2 volume rolled over to the June contract this morning.

    jimns
     
    #2474     Mar 8, 2007
  5. jimns

    jimns

    Easy - just trade from the middle of the chart.

    jimns
     
    #2475     Mar 8, 2007
  6. Scrappy as all hell but an easy 100 bucks on the ER from that first signal
     
    #2476     Mar 12, 2007
  7. Now that I've switched from the (YM) to the (ER2) I am using
    classic Trader28 and SPM set-ups and indicators.

    1). Macd 12-26-9
    2). Sma3 + 2
    3). Sma8 + 2

    The Sma3 + 2 is the early cross.
    The Sma8 + 2 is the direction of the trend.

    Do you use the cross of the SMA3 + 2 with the SMA8 + 2
    at all?

    thanks

    snarlyjack
     
    #2477     Mar 12, 2007
  8. No that will lag the action
     
    #2478     Mar 12, 2007
  9. Thanks Trader28!!!

    Think I'll just watch the action on the ER2 today just to get
    into synch with it. Unless their is a big break in the market,
    then I'll jump on it...

    I look at a volatile market as a opportunity to us traders.

    According to the T.V. they just stopped trading "New Century, Corp" a large mortgage lender. The sub-prime loan market
    isn't going well. This could be very interesting...

    snarlyjack
     
    #2479     Mar 12, 2007

  10. Yep, no news or reports, just take the setups that scream at you
     
    #2480     Mar 12, 2007
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