How to avoid false signals using MACD?

Quote from Trader666:

And where might I find "Putting the Pieces Together" and the original video?
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There are Journals on PVT and Journals on SCT in ET.

the custom has been to make available, by reference, as much as is possible to anyone doing the work in the journals. Often, what has happened is a citation has been put up that begins the task of getting to a site and using a password, if required, then following the prompts to the specific location for the work at hand.

This means that often there are gate keepers handing out passwords and sometimes their addresses and phone numbers since they are in support crews that assist people doing the work at hand.

My assumption is that you have gotten to almost all the places that have helpful information regarding the template and the three applications of the template, namely: Sector Rotation, PVT, and SCT.

From now on I will refrain from giving references to the publications, vidoes, recordings, chat archival stuff, web sites, and other types of archives. I am not willing to impose work on support people as an aspect of my posting here any longer.

I am eternally thankful to all the people who have gone on point to forward study and work that anyone is doing. Here in ET there are several such journals and they have references to others who work in various locations doing webs and archiving. Right now, I paused in this typing to update a review schedule for debriefing of transcribing of live trading and the associated conferencing on the debriefing for that session.

Lately, I have noticed a lot of aliases going through the process of refreshing their past commentary on me. There are two effects.

On the other hand I spent 6 hours of my day today,after am trading, in two locations (Senior center type places) where our effort was to start checks or grocery store gifts certificates rolling monthly for poorer people for their remaining lives as long as they live and at NO cost to them in any way whatsoever.

I also spent 20 minutes photographing in Texas canyon for some oil painting I will be doing. I also lined up a donor sponsor for the annual gala of the regional Arthritis Fountation which long ago originated in Tucson. We coordinate 8 subcommitties for this effort.

You have not contributed to anything that I know of. You do not work to learn. Your sample universe for testing whatever you tested with whatever code you chose to keep out of reach of those who could repair it, was a disaster of your making and reflects on you. The lazy choice of the S&P was anything but a 3 beta Universe. So you get the consequences of proving whatever you proved to yourself that prevented you from becoming wealthy and then being helpful to others. SAD indeed.

I do not care about B people. B people have the world they live in. What they think about what they cannot use instructs me in what I can do to help the other kinds of people than B people.

For me, it is extremely important to filter B people away from those who are contributors to passing it forward and those who use their wealth to be helpful to the less fortunate.

B people will do as they wish. Goodbye to you.
 
One way to stop getting false MACD triggers is to stop using indicators. Do indicators really help you? Think about this....the market is falling and puts in a hard bottom, then goes to a lower low on light volume and heads back up. You check out your MACD and, "ah ha, there's a +div." Did the div really help you with the trigger? What if the +div didn't exist? Would you still take the trade? I would.

Now suppose you take that same trigger with no +div on the MACD and start adjusting the numbers, or perhaps use the RSI instead, or the stochastics, or the CCI, or whatever indicator you choose to use. I can promise you this....if you dig deep enough you'll find an indicator that flashes a +div while others don't. So what use are they? It's all a fallacy. That being said, however, if using an indicator improves your trading them by all means keep using them. If not, then perhaps they don't offer you an edge?

The secret to trading is to do something different. If everyone is using the same MACD trigger how can you expect to win. Try something a little more creative and realize the best indicator in the world is your interpretation of price action. It's all about price action.
 
There's a lot you can do with MACD but simply using the cross to enter will really lag the market.

Google MACD and learn how to use the Histo to enter/exit when a histo bar breaks the Hi/Lo of a prior histo formation. This will at times get you in very close to the max reversal.

Learn how to use Histo divergences and how to enter on the clearly weak histo bar on the reversal. This is within the current formation and not referenced to a prior formation.

MACD can be very good with trends but like every indicator getting the gold requires patient research. Try placing a MACD of a shorter timeframe under the price action of a bigger timeframe chart. To make this work you need to be able to read PA signals. The MACD will clarify the entry, especially when PA is fuzzy, and help you stay in longer.

All the above are more advanced uses of MACD. As you are trying to use MACD crosses for entry it's clear you have a steep learning curve ahead in every department of TA. If your PA reading skills are not sharp you will not be able to read indicators - any indicator - they are an aid and not a crutch.

Finally, a good example of making money using a quick and easy to learn MACD technique is Jack Chan. You'll find him under private charts in stock charts dot com. Jack has been making money for years using MACD and a trend line confirmation. It's easy when you know how! All Jack is trying to do is identify when there is a trend that will carry PA for a bit giving good odds for a decent profit. That's where I'd suggest you start and when you have mastered that you can start to learn more about PA and MACD.
 
Quote from ProfitTakgFool:

One way to stop getting false MACD triggers is to stop using indicators. Do indicators really help you? Think about this....the market is falling and puts in a hard bottom, then goes to a lower low on light volume and heads back up. You check out your MACD and, "ah ha, there's a +div." Did the div really help you with the trigger? What if the +div didn't exist? Would you still take the trade? I would.

Now suppose you take that same trigger with no +div on the MACD and start adjusting the numbers, or perhaps use the RSI instead, or the stochastics, or the CCI, or whatever indicator you choose to use. I can promise you this....if you dig deep enough you'll find an indicator that flashes a +div while others don't. So what use are they? It's all a fallacy. That being said, however, if using an indicator improves your trading them by all means keep using them. If not, then perhaps they don't offer you an edge?

The secret to trading is to do something different. If everyone is using the same MACD trigger how can you expect to win. Try something a little more creative and realize the best indicator in the world is your interpretation of price action. It's all about price action.
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Divergence in and of itself is a horrible way to trade. Statistical support and resistance is needed. Some traders do quite well with MACD divergence along with Support and Resistence. I personally don't trade divergences of any kind.
I agree with you, for the vast number of traders out there, they are better off just trading "Price Action".
 
MACD is a lagging indicator so it works well with trendy markets, but horrible with range markets. But how do you predict when a market will be trendy and when it will be in a range?

Therefore, just don't use MACD
 
I asked a simple question about where I can find your references that you gave me and you run off with verbal diarrhea about your oil painting and 8 subcommittees for the Arthritis Foundation? LOL!

In case you're too senile to figure it out on your own, my contribution with respect to your "methods" has been to objectively backtest whatever you are accidently clear about, as a reality check for newbies who aren't blinded by greed from your pied piper claims like routinely making 3X daily range. You made that claim (among many others) and extraordinary claims require extraordinary proof, so show us! But we all know that will never happen...

If your "Catch Up With Tomorrow's Paper Today" methodology doesn't work on the S&P stocks, what that says is that your "method" is lacking, not that the S&P stocks is a lazy choice. Especially since you didn't specify a universe of stocks to apply it on. Reading that paper speaks volumes... the title and the arrogant tone are almost as if it should be nominated for a Nobel prize! But in fact, it doesn't even work on the S&P stocks. So your approach is to attack me and the S&P stocks because you know you can't legitimately debate my findings. How typical...

P.S. I didn't keep the code from anyone as you claim which is yet another falsehood... as I've said several times, I used Spydertrader's code.

Quote from jack hershey:

BLAH, BLAH, BLAH...

...I also spent 20 minutes photographing in Texas canyon for some oil painting I will be doing. I also lined up a donor sponsor for the annual gala of the regional Arthritis Fountation which long ago originated in Tucson. We coordinate 8 subcommitties for this effort.

You have not contributed to anything that I know of. You do not work to learn. Your sample universe for testing whatever you tested with whatever code you chose to keep out of reach of

those who could repair it, was a disaster of your making and reflects on you. The lazy choice of the S&P was anything but a 3 beta Universe. So you get the consequences of proving whatever you proved to yourself that prevented you from becoming wealthy and then being helpful to others. SAD indeed.

I do not care about B people. B people have the world they live in. What they think about what they cannot use instructs me in what I can do to help the other kinds of people than B people.

For me, it is extremely important to filter B people away from those who are contributors to passing it forward and those who use their wealth to be helpful to the less fortunate.

B people will do as they wish. Goodbye to you.
More...
 
Quote from bespoke:

Thanks, but that's too difficult. I'm not interested in spending screen time to learn how to do something. I just want something I can see below a chart with a binary buy or sell signal. Something in the area of 95% correct would be great. But 80% would be okay if the risk:reward were something like 1:3.

TIA
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Try a Ouiji Board. It is faster...
 
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