When you say crosses the zero line what part of the MACD are you referring to? It looks like (and could be wrong) that you are not using the MACD Histogram unless that's one of the lines there. If memory serves, there are 3 components of the standard MACD. I guess my question is - what exactly are you using of those 3 parts? Thanks
Just wanted to say "THANKS!" I learned new ways of looking at the mkts from reading the original thread on SPM a long time ago. "The fault lies not in our stars, but in ourselves."
In regards to the bigger loss on my blotter, that was in an instruement with a higher tick value than the ES. So if the trade had worked in my favor, I would have made substantially more than the ES contract provides on a tick-by-tick basis. Trading is all about: a) identifying the trend b) taking high probability trades in the direction of the trend c) managing your risk (controlling losses) so that you have plenty of captial for the next trade. d) taking the next trade. That's really all there is to this game. Good Luck
This is a humorous post. -------------------------------------------------------------------------------- Quote from GermanTrader: Thank you. I have a confirm signal set that works well with this, even during the current demonic volatility. -------------------------------------------------------------------------------- Care to share your confirmation signal? As you can see from the thread it is an entry/exit method that uses the original default. You can google for the current one. The entry is told to you and you are on your own for the exit. Below, an illustration is used to provide the humor. MACD stands for something. too bad it wasn't MADC. The zero line crossove is sometimes used as a confirmation and rarely (except for T28) is used as a trading signal of any sort. The DC is the anti-whipsaw trading signal as the humorous illustration shows. It can be used for beginners and higher levels of trading. The indicator is missing from this illustration but it can be "seen". to see it most clearly use a histogram of the difference of the fast line and the slow line. Two SPM trades are represented on the chart: first a short near the end of the short trend and a long well after the price long trend began. To keep this on the beginner level (where most traders begin to trade live) you want to use, within the indicator, its divergence then convergence characteristic. The post entry confirmation signal is the fast line crossing the slow line after an extreme on the fast line where its solpe comes to zero and changes the slope sign. On the not shown (for T28's reasons) histogram the switch from divergence to convergence is the peak and the trough of the histogram. The signal to go short is the peak and the signal to go long is the trough. There is a companion indicator that leads this histogram reaching its signal points. T28 may wish to post the original pm's sent to him when the SPM thread was first set up. They explain the above. the humor of using the zero line crossove comared to the D then C signal point is obvious when you are logging profits. For beginners this also provides both the entry and the exit. And , if desired, it can be traded as a beginner reversal strategy. The annotations for SPM are in yellow and the annotations for the humor are in pink. The delay from the pink to the yellow is in gold and labelled. Never do reversal trading on SPM (this example is the beginning of the midday losses period for SPM.) Final note: How does an SPM trader chose an appropriate exit for the zero line crossover of SPM. Hint trade SPM from yellow to pink as an entry exit trade. To make the profits after the exit until the next yellow signal do a reversal instead of exit and then use the next yellow as a very late confirmation of the reversal. You can use other less peaking (and troughing) histogram mounds as a way to do reversals inside of the beginner reversals. In doing so it is a god idea to use the correct MACD default (see illustration) and to use the leasing indicator of the MACD once the default is correct. You can log all of this as well to keep track of things.
It was only a matter of time before Jack would show up. Now he will get full protection from the mods here also.
Not really. We got to signals 1 through 5 on SPM. I just waited until I could use one of the charts to make the point after it became clear that SPM was only handing out entries and NOT providing exits. A person asked what the signal was after two trades were announced. All he got was the entries and NOT the exits. I know my annotations are too complicated on the SPM. They are just showing how MACD was designed to be used after its initial application that just used MACD scale values as signals (that is how the original application avoided chop). It used to be a warm up drill to do reversal trading on indicators. Indiactors are just indirect measures of what is going. The chop problem eliminator for MACD is to use its anti whipsaw characteristics. As in any method of trading, the sequences of the indicator's various signals are how to train the mind. For T28 this is a throw away because it is just one of his early crutches that lead to the type of print you saw from mandel. At 8 bucks a pop, how many contracts is mandel trading. His costs are 10% of his profits. Run those two pink trades onto mandel's print and see what it looks like for that part of the day coming into midday.
This is an internet forum... Everybody is free to speak... so long as you: Stay on Topic No Personal Attacks No Obscenities If you do not like OP's topic, please start a new thread of your own. If someone irritates you, please put him on Ignore. If you see an offensive post, please use the Complain button.
That was just a humorous quicky to upgrade the thread. how long do you think it will take for someone to put up the correct defualt, the leading signal of the D to C shift and a print that shows over 3x the ATR? LOL.... Zero crossover is humor as a signal.
GF, 1) On the setting for the macd is it expotential, simple etc?? 2) what stop loss do you use? Thanks in advance