Bearbelly: If you take your 3ema with the 8 or 9 Bollinger Band. As the 3ema crosses over the 9 (early entry) line it up with the macd to see where you are, if it is crossing the zero line, take the trade. For the exit if the bar is hitting the outer edge of the bollinger band (read up on bollinger bands) then exit position. Or if the 3ema is crossing through the bar exit position. I think the bollinger bands with the macd with all of t28 rules might be the perfect mix. snarlyjack
Thanks snarly but since this is the first losing day in the last couple of weeks Im not ready to make any changes. Looking back at todays chart it seems impossible that I could have lost money. Obviously the problem is psychological. Some days you just dont see things clearly. I drank cocoa this morning instead of coffee. Im pretty sure that is what caused it.
Has anyone documented probabilities of their system for both when they do not use it and when they use it? Have you compared the two and noticed any inconsistencies? What I'm getting at is our trades effect the market to a certain degree.
Yep it was a Friday all right... uglier than a Dick Grasso look alike contest There was still good trades but just not as smooth as usual, got spooked out of a couple of winners... I'm sure you heard the cursing halfway around the world
Trader28... Can we talk? "Entries"... Ok, this is what I have "started" to do... I make my entry after the bar "closes" cleanly through the zero line. For example, if the first bar "closes" half way through the zero line I won't enter the trade. I'll wait until the second bar "closes" cleanly through the zero line, then enter trade. I have found that "candles" were screwing me up but bars (open,hi,lo,close) seem much cleaner to me. (?)... It seems that if I don't wait for the bar to close cleanly through the zero line the price bars starts hooking back up/down to form a zero line reject. What are your thoughts? snarlyjack
Because the MACD is a lagging indicator I use the equivalent (proprietary indicator) of a 10 period simple moving average with 2+ offset to anticipate zero line crosses and the 3 SMA +2 for re-entries in a strong trend If you wanted an indicator that complimented the 10 SMA +2 and gave signals roughly at the same time then you would replace the MACD with the CCI (standard 14 period) and unlike Woody you would use the zero line as a trigger when confirmed (alignment) by the 10 SMA +2 I think you miss some of the big picture with a CCI but it is faster and you do get both confirming each other at the same time on the good trades generally speaking, just use common sense and dont go short in a major uptrend just because the CCI crosses below it's zero line and price pops below the 10 period SMA +2 Chart for Friday with CCI KEY: Black Line Study at top of page = CCI Light Blue Line Study = 10 period SMA +2 White Dotted Line Study = 3 period SMA +2 *Ignore the ribbon at the top and the black arrows and white crosses on price chart, they are part of the expert advisor that changes the candles blue or red depending on momentum and I dont use them
Trader28, I have no problems with the MACD, in fact I really like it. Personally, I dislike the CCI as a indicator. I really like your system with the Macd and Bollinger Bands. I've always considered Bollinger Bands kinda the "holy grail" but by themselves they need a little help. But used with your Macd system...now we have something... Just trying to really fine tune the entry's and exits. snarlyjack
Can this techinque be used with equities as well ? If so, what are the prerequisites of the stock. Thank you and great work.