Yes, I will take these ZLC trades after either a divergence between price and macd or after a re-test of a high/low of price with a divergence. Good point.
Hi Donkee, Thanks for the reply. Do you take ZLR on the faster MACD LBR ? or just on the slower one ? Thanks
OK thanks, Did you just get a long signal at price: 767 10:20am EST bar ? fast MACD ZLC after divergence ? Thanks
Yes, but did take a 1 pt loss. Shorted at 766.1 and bailed at 765.00. We hit the early low and just kept bouncing, never got to my 764.60 target which needed a 764.5 bid to get filled, so I bailed with 1.10 instead of a potential 1.5 profit and have 2 trades, so far...basically break-even. Will wait for the next signal.
Was the 766.1 short based off the fast MACD crossing back down through the zero line ? I didn't see any form of divergence before the cross back down but I guess a move up through and then right back down through is like a fake breakout / fake ZLC move so play can be reversed ? Thanks
Target hit for a 1.5 profit, but I'm fine with only getting 1.10. Sometimes I will weigh the reward of another .40 vs getting stopped out with a 1.00 loss and I'll just bail. No problem...next trade on deck.
Yes, it was ZLR trade. The ZLR can skim along the other side of zero for a few bars. Remember, I'm just trying to scalp 1.50 points. I'm just looking to ride a "shot" of momentum.