So are you saying that MACD generated signals, that expose what I treat as weakening or strengthening price action are nothing more than coincidental events?
As the only component of this scenario that is indigenous to the market is price, then, yes. You could also ask yourself if you can perceive weakening or strengthening price action without it.
Agreed. MACD is a great and much overlooked and maligned tool. I think though you would agree that it needs to coupled with price in order to forecast properly. I put the following together:Bollinger Bands, MACD, RSI and price. This helps me draw a better picture and shows just how strong or weak price action is. The trader using just price may be able to see weakness or strength, but will not be able to see how weak or strong. Trades do not need planning in advance--what arrogance to think that you could--Rather, you need to be able to think and act in real time. Indicators with price help you in that regard.
DB, I don't really see the point in debating this. Indicators lag price action, so you get in into the saddle before me. Is this really the objective in trading? Not as far as I am concerned.
There is a point in debating it, but not in debating it further. The objective in trading is to make the most of the opportunities that the market makes available.
To me making this statement sounds arrogant. It is not because YOU cannot do it, that it is impossible. I plan my trades minutes before I open them. So, in advance. I say: if condition X is fulfilled I initiate a trade, I also know already where my stop is ( entry +/- stop), and I also know already that if condition Y is meet, I will close my trade. I always trade in this way, NEVER try something else. But I never know in advance the exact price nor the exact time when these conditions will be fulfilled.
How to manage trades and how to read the signals can be known in advance since you would manage the trades and read the signals the same each time. Entries and exits cannot be planned in advance. To say you can, is the utmost example of arrogance.
No, because there are patterns in the markets. If you can recognize them and link them to certain scenario's from past, you can already prepare yourself because scenario XYZ will repeat itself soon. I never use actual prices to decide what to do. I use the pattern they make because that tells me what will happen. It is of course essential to know and master these techniques. If not it will sound like chinees for you. What is apparently the case for you.
You cannot plan in advance when to take trades or exit.---What arrogance-- That is done in real time.