<FONT FACE="arial" SIZE="2"><TABLE BORDER=5 BORDERCOLOR=RED CELLPADDING=5 >
<TR> <TD> Moderator's Comment:
I have split these posts from SPM Discussions
so that readers can focus on the respective discussion.</td></tr></table></font>
All you are pointing out is that you are using the zero line cross of the histogram of a defaulted MACD. The default is off in your case.
You may want to explain these three timing aspects of beginner trading to T28:
1. Use a default related to electronic data transmission. Appel, long ago came up with the deaults you use before electronid communication. He also used absolute values "away from zero" as signals for trending. It is worth looking them up. the elcectronic defaults came into vogue before both of you began trading and using paid web site chat sites. The modern defaults are 5 13 6.
2. The MACD lagging signal used by T28 is well apparent since he has modified it with an shifted MA band aid that still doesn't work. Nothing he posts works for exits as we all see.
He must have read somewhere (like the place where you get you out of date quotes, that the zero line cross over applies directly to the MACD curves; it doesn't. You point that out with the two charts you posted here. Everyone sees the the black to white and white to black are the histogram zero line crossover points. I pointed that out graphically on a "tuned" chart that jahajee posted a few weeks back just before the cosing of the ...lol.....SPM bootcamp.
3. So any interested in trading using MACD can simply use the correct default, the correct signal AND the correct type of trading tool.
The correct trading tool for MACD trading is the REVERSAL. If you run a log and do reversals when the color changes, then you contiually take the offer of the market. This get any trader out of the 1 contract level trading in a very short time. his equity curve is a Power Law curve instead of the flat linear curve both of you are showing for the last two years.
You are not in the market very much since you do not trade frequently or understand what you are posting. The three points I simply make above, give you EXITS in a trading strategy. the T28 motto is: "EXITS are you own business because its your trading style". Humor is important in posting and that tops them all.
Black is a LONG hold and White is a SHORT hold. What is in between is a REVERSAL trade to KEEP YOU ON THE RIGHT SIDE OF THE MARKET AT ALL TIMES.
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2147061 width=800>
So why can't SPM traders get this? The main reason is that durinf midday chop they lose as much as they gain elswhere during the day. Why is this? see the default disscussion above and Appel's original singal design. He knew that MACD did not work when the signal to noise was below a certain level. You and T 28 do not know or read about that stuff.
"Away" was the word used by Appel. He set the minimum "away" values in the era BEFORE the PC.
In TA from A to Z Achelis reviews all the indicators, states their math and gives the signals for the indicators. To modernize the book, it is necessary to add default changes form those of the creators since most creation was done BEFORE the advent of the PC. A Q and A was set up by Chris Christopherson before the advent of ET; he has maintained it. You may want want to check out the post PC defaults that are assigned in those Q and A's on each indicator.
Then at some point you may want to consider why most ATS's do NOT use indicators. There is one reason: To have a quality ATS a modeller or developer has to take advantage of all the market's variables and take advantage of software languages that wre NOT available before the PC when indicators were created and useful. That era ended when the PC enabled coding languages and modern modelling and development began to be done by programmers working under the direction of modelers and developers.
SPM will NOT be able to use the proper defaults of MACD: it will not use the proper zero line cross of the histogram and it will not do reversal trading as a way to include entry and exit signals all mechanical methods do have. That is too bad.
At last a couple of chart were put up to show these three things as the alternative to what is being done.
as we know MACD is not needed since SPM has gone on to usingPA trading. Notice that none of you participate in the PA threads run by others.
<TR> <TD> Moderator's Comment:
I have split these posts from SPM Discussions
so that readers can focus on the respective discussion.</td></tr></table></font>
All you are pointing out is that you are using the zero line cross of the histogram of a defaulted MACD. The default is off in your case.
You may want to explain these three timing aspects of beginner trading to T28:
1. Use a default related to electronic data transmission. Appel, long ago came up with the deaults you use before electronid communication. He also used absolute values "away from zero" as signals for trending. It is worth looking them up. the elcectronic defaults came into vogue before both of you began trading and using paid web site chat sites. The modern defaults are 5 13 6.
2. The MACD lagging signal used by T28 is well apparent since he has modified it with an shifted MA band aid that still doesn't work. Nothing he posts works for exits as we all see.
He must have read somewhere (like the place where you get you out of date quotes, that the zero line cross over applies directly to the MACD curves; it doesn't. You point that out with the two charts you posted here. Everyone sees the the black to white and white to black are the histogram zero line crossover points. I pointed that out graphically on a "tuned" chart that jahajee posted a few weeks back just before the cosing of the ...lol.....SPM bootcamp.
3. So any interested in trading using MACD can simply use the correct default, the correct signal AND the correct type of trading tool.
The correct trading tool for MACD trading is the REVERSAL. If you run a log and do reversals when the color changes, then you contiually take the offer of the market. This get any trader out of the 1 contract level trading in a very short time. his equity curve is a Power Law curve instead of the flat linear curve both of you are showing for the last two years.
You are not in the market very much since you do not trade frequently or understand what you are posting. The three points I simply make above, give you EXITS in a trading strategy. the T28 motto is: "EXITS are you own business because its your trading style". Humor is important in posting and that tops them all.
Black is a LONG hold and White is a SHORT hold. What is in between is a REVERSAL trade to KEEP YOU ON THE RIGHT SIDE OF THE MARKET AT ALL TIMES.
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2147061 width=800>
So why can't SPM traders get this? The main reason is that durinf midday chop they lose as much as they gain elswhere during the day. Why is this? see the default disscussion above and Appel's original singal design. He knew that MACD did not work when the signal to noise was below a certain level. You and T 28 do not know or read about that stuff.
"Away" was the word used by Appel. He set the minimum "away" values in the era BEFORE the PC.
In TA from A to Z Achelis reviews all the indicators, states their math and gives the signals for the indicators. To modernize the book, it is necessary to add default changes form those of the creators since most creation was done BEFORE the advent of the PC. A Q and A was set up by Chris Christopherson before the advent of ET; he has maintained it. You may want want to check out the post PC defaults that are assigned in those Q and A's on each indicator.
Then at some point you may want to consider why most ATS's do NOT use indicators. There is one reason: To have a quality ATS a modeller or developer has to take advantage of all the market's variables and take advantage of software languages that wre NOT available before the PC when indicators were created and useful. That era ended when the PC enabled coding languages and modern modelling and development began to be done by programmers working under the direction of modelers and developers.
SPM will NOT be able to use the proper defaults of MACD: it will not use the proper zero line cross of the histogram and it will not do reversal trading as a way to include entry and exit signals all mechanical methods do have. That is too bad.
At last a couple of chart were put up to show these three things as the alternative to what is being done.
as we know MACD is not needed since SPM has gone on to usingPA trading. Notice that none of you participate in the PA threads run by others.
