That was a bitch of a day on the open for half an hour but after the reports came in it was fine, good trade to the upside, then 2 shorts, then another long before lunch http://i4.tinypic.com/2nal020.jpg I've been trading it for a couple of years but it kind of snuck up on me, I actually thought I was trading something else (I use Kwikpop expert advisor and moving average) took awhile to see that I was unconsiously trading the MACD cross if supported by the Zero Line... those trades just felt right... but back then I couldn't tell you why and would probably have told you it was Kwikpop
Then in the afternoon a short that didn't go too far (still lunchish) a slow burn to the upside that took forever but never really worried you out of it, nice big short to finish the day http://i7.tinypic.com/2rruozm.jpg Having said all that though, I doubt there is a system that can survive constant chop... that's why we choose a vehicle like the ER2
Yes I like to see if the 10 min is above Zero Line or not for direction/momentum You'll find price will pop above/below Simple Moving Average before the MACD signal, it's lovely when they come together but just like in the bedroom thats rare, generally you are using the SMA to get you in a little early when it is obvious the MACD is setting up to cross (to avoid the inherent lag of the MACD) Yes opposite for short MACD cross to upside and already above Zero Line is a good trade as all the momentum is supporting it, likewise a cross to the downside if it is already below zero is a good short (continuation)
It's not all that complicated, BB, and you don't need a MACD. The MACD is simply reflecting what price is doing, i.e., the reversal and the confirmation of the reversal. If you can draw a trendline and know what a swing point is, you can accomplish the same thing without the indicator. LC
I'm not seeing a Long trade before lunch (Aug 31). Tell me if I'm wrong, but I thought you said an MACD cross had to be above the zero line for a Long trade.
The cross occured below the Zero Line and that means you MUST wait for it to punch through the Zero Line, thats when you jump on, usually a great trade and my personal favourite, you can try to anticipate it a little if it is obviously going to breach Zero but there is usually heaps left to go after it breaches anyway the difficult one was the short just before that, the MACD crossed it's MA below Zero but reversed almost instantly, on those you gotta take the haircut, no system is a 100%
I've gotta hit the hay, it's 11:00pm here, but I'd like to leave another question for you. How do manage your trades after entry? Do you wait for another MACD cross, price to cross the 9ma or just use discretion? Any price targets?
I go for price and time targets, roughly speaking $200 or 10 minutes, whichever comes first, (good trades tend to work straight away) but they both can be shortened or lengthened depending on the day, sometimes you know it's a screamer of a day... and other days you know you should just get drunk
Quote "the difficult one was the short just before that, the MACD crossed it's MA below Zero but reversed almost instantly, on those you gotta take the haircut, no system is a 100%" there was a bullish divergence on the macd ...vs the bars... anyway, question Trader28....what's the ribbon on top of the macd on your jpgs'....bullish / bearish.... Thanks, Slave
Yeah but that trade will work more often than not so I wont cloud the issue with why it didn't, or next time I see it I wont trade it Thats Kwikpop's expert advisor, I dont really ever look at it, it's decoration