Snarlyjack You might try waiting for a pullback after the crossover. This is what I do. This morning:
I have thought about the 'wait for a pullback' idea but at the end of the day isn't the whole idea to jump on the train while the momo is moving on the cross and won't most of the best trades and winners just bust through the zero line and price just follow through without any pullback ? Food for thought....
Time zone is eastern standard time, same as new york 3/5 means 3 winners out of 5 trades or 3 for 5, etc.
Ive been trading the ER2, ES, and YM For the YM and ES, here is what I suggest: These both dont seem to do well with zero line crosses. Wait for the MACD cross to be below zero for shorts, or above zero for longs. You can also do what I do, add a slow stoch (15,5,3) This can confirm momentum on MACD crosses that may not have the zero confirmation. ie. MACD crosses to go short, but the cross was ABOVE the zero line, so it failed the zero confirmation. BUT, the slow stochs were obviously showing a downtrend, so the trade was valid and a good one. This happened today (10/18) early (around 9:45ish?) - whenever the first down move was. Youre right about the zero line cross though, it doesnt seem to work most times on the YM or ES, atleast not as well as it does on the ER2...
Im using the defaults as per Trader28. I actually had two trades as I am using a 20 pt. target. First trade entry 12043 exit 12063. Second trade when it pulled back to 9sma again entry 12056 exit 12076. Wish they all worked that well. I am still on simulator. Just switched over to YM and want to give it a few days before I go to cash. ER2 was just too jumpy for me. This last cross at 11:05 is the kind you have to be leery of. Crossing at shallow angle in middle of daily range is not what I like to see.