How to avoid false signals using MACD?

Quote from ammo:

poem was good, just didn't like the slant
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The slant, the slant
I'd correct it but I can't.
And please remember before you post back
That if you defend this fellow then you don't know Jack.
 
Quote from Thunderdog:

The slant, the slant
I'd correct it but I can't.
And please remember before you post back
That if you defend this fellow then you don't know Jack.
More...
don't know jack, just don't like flack
 
Hi Daytrade001
I think that you mustn't use MACD to enter end exit the trade. You must price for that.
About MACD I think that this is just oscilator and works as all the other oscilators, with the specific, that MACD has no min and max value. Apart from this it juts like the other oscilators. Up to now I have found only one way to use them, but not to exter and exit the trade. This should be wrong.
Cheers :)
 
I've not previously used the macd but started to try and develop
a 'scalp' system for fx trading and quite like the visual display of
the ' G#MACD ' series of MetaTrader 4 indicators written by CJA
on http://www.forex-tsd.com/
mtf - multi-timeframe indicators are very popular and there's many
variations including multi pairs / multi indicator digitals such as the
GMACD shown in the middle window

thanks Jack for your macd instructions

what's of more concern to me is staying in the trade longer - -
that is not getting whipsawed unnecessarily so the addition of
the 2 indicators on the Price (tho I'm a Standard Error Chnl user)
yellow/magenta ' Triggerlines_mtf ' and 'Instant Trendline1 ' green
red to aid decision making, bear in mind one pays about 3 pips for
commission depending on the pair traded, right margin scale is 20
pips, chart is 5min eurusd
 

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Quote from akbardoloop:

That's very odd, I find it works every time, I wait for the crossover and then go against the trend! that's right, ignore it, hence spooking the market, try it, if it didn't work, I'll give you your money back.
Fast Stochastics is quite neat as well, just wait for the crossover then follow it, so to re-cap go against MACD and follow Stochastics. Bob's your uncle!
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I am with you on these indicators but I found that stoch is not working very well on ES... Do you have any recommendation?

sg20
 
Quote from DayTrade001:

Hi,

I'm using MACD for entries and exits. I'm getting false signals, when market does not move much in that direction and getting losing trades.

Experts please advise.

Thanks
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I use a hybrid version of the MACD with cumulative delta as my "qualifier" - that is about all I use to keep my trading simple as far as indicators go.
 
Quote from allenhobbs:

MACD doesn't work on a consistent basis. It has been the ruin of many a trader. Chuck it before you blow out your account.
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No indicator or chart pattern works on a consistant basis..if it did, it would be the holy grail.

you can slow the macd down by increasing the measurement, so

signals are stronger, but you'll have to wait lonnger for them,

and even then you will get false ones, leading to higher losses/

gains.

Indicators are like crack..i've taken them off..put them back

on..taken them off..and put them back on again. Its not so simple

as to say to yourself "oh its oversold, let me buy here" as the

trader thinks its a bottom because the indicator is so damn

oversold you cant see how it could go lower.....sure enough it

does, and so you get pissed, and start your search for the

next "best" indicator.
 
And where might I find "Putting the Pieces Together" and the original video?

Quote from jack hershey:


Here is something you may want to consider. Take off your shelf the Meeting 5 Background paper for the IBD Meet UP Tucson* It was updated in October 2006. Use the original video as a reference for this illustrated transcription. The update in the text is in bold print and 30 some additonal illustrations are included.

All of this will help you in several ways. It is your choice to use the help or not use it.

*Putting the Pieces Together is the short title and ,as usual, it was published by Adobe Llamingos, 77 pages.
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Thanks for all your comments and sharing experiences and information on this. I just started using this. I'm using 625 tick chart for ES.
 
Quote from DayTrade001:

Hi,

I'm using MACD for entries and exits. I'm getting false signals, when market does not move much in that direction and getting losing trades.

How do I filter these signals? Also I'm getting late entries and exits, how do I enter bit earlier?

I'm using MACD(12,26,9), is there any better configuration of MACD, to get better entries. I'm trading ES.

Experts please advise.

Thanks
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Try using a 9 / 18 ma crossover instead of macd


keep in mind, every indicator is a derivative of price.


KISS
 
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