The Trouble With Scribbles

I was thinking that someone had mentioned that your success was probably due to something else--that it couldn't have anything to due with the use of MACD?

 

I don't view it as premature, it's a valid pattern that has two potential outcomes, it's an odds game. Winning trades absolutely have to be a multiple of a stop level.

 

Price and MACD pattern recognition experience, nothing more.

 

I agree totally. Stops need to be placed outside the noise at a level that is based upon recent trading deviation. The first signal could have been taken with the proper stop.

 

But someone will surely ask you about the horizontal lines that you drew. Are you also using SLA?

 

Thanks. That's because I don't hate scribblers. I just disdain the notion that it is presented as the end all with virtually no drawdown and has very little if any attention paid to risk management. As well, it is shown absent testimonial.--Izzy

 

I do look at lines, yes. I started reading the plan, but got bored reading it, too many variables.

 

Way overbought on the 5, 15 and 60--and the 60 cash chart is well outside the upper Bollinger Band. Use caution in initiating new longs here. If Long, may want to take profits. For myself I am looking for a short opportunity.

 

Yes, I agree with you--just wanted to get your rationale. The SLA is wholly subjective and has way too many variables that one must keep in mind. It's no wonder that the students really aren't able to grasp it. There is a new rule for every particular circumstance when there needn't be. It is curve-fitting in hindsight at it's finest.

 

Daily trend remains down here, with the weekly slightly down and the Monthly weakening and showing potential for rollover with MACD at historically high levels. Caution is to be exercised.