MACD question

[retire45]

Hi everyone.. Please look at attached ES chart.. The declining MACD upper gray trendline.. what is the usual interpretation. I know price ultimately rules..

 

[Wallace]

divergence:
http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:moving_average_conve

 

[Mr_Black]

You need to synchronize Price Action with MACD, define the Trend Direction and Wait for HL(Up Trend) or LH ( Down Trend) to Enter

 

[Mr_Black]

Here is one more Chart from the Worst Market Possible (FX) ....Note when you define Trend and Price Structure you have 5 good Short Trades...

 

[Transatlantic]

Mr Black,

Nice charts. Maybe this is a dumb question, but could you please walk us through an example entry from the first chart [attachment] you posted? I'm not clear if your usage of the usual MACD divergence is the same as what is commonly used or a little different. Thanks.

-S

 

[Mr.Consistent]

Quote from retire45:

Hi everyone.. Please look at attached ES chart.. The declining MACD upper gray trendline.. what is the usual interpretation. I know price ultimately rules..

When you have higher highs on price and lower highs on MACD, it tells you that the speed at which the trend is moving is slowing.

It doesn’t mean that the trend will stop or reverse direction, it only means that the speed of the trend is slowing .

Keep in mind that the direction of price trend may continue at slower rate. Be careful with divergences

 

[Mr_Black]

Quote from Transatlantic:

Mr Black,

Nice charts. Maybe this is a dumb question, but could you please walk us through an example entry from the first chart [attachment] you posted? I'm not clear if your usage of the usual MACD divergence is the same as what is commonly used or a little different. Thanks.

-S

On every Time Fractal usually are 3 visible trends Minor, Intermediate and Major ...On this sample I use MACD only to see if Price Oscillation is on Extreme (><0) and Price is HH,LH or LL,HL compared to previos Price Oscilation this will be the bondaries of the Major trend on this time fractal....After that you can use your favorite entry signal to enter Intermediate Trend Change in same direction as the Major Trend

 

[Mr_Black]

Here is sample from Friday ES

 

[retire45]

Quote from Mr_Black:

You need to synchronize Price Action with MACD, define the Trend Direction and Wait for HL(Up Trend) or LH ( Down Trend) to Enter

I like the simplicity! Problem is my complicated mind has other thoughts when the extreme trade comes to pick me up!...

 

[retire45]

Quote from Mr.Consistent:

When you have higher highs on price and lower highs on MACD, it tells you that the speed at which the trend is moving is slowing.

It doesn’t mean that the trend will stop or reverse direction, it only means that the speed of the trend is slowing .

Keep in mind that the direction of price trend may continue at slower rate. Be careful with divergences

I think from an intermediate (2 to 5 hours) trading perspective the MACD peak and trough areas when co-coincided with properly identified price levels present the "best" loss trades.. This is a plan I have been developing.. nothing new at all but analysis like this provides, over time, better odds of succeeding at ES trading.. for me at least.. Has been working "ok" so far except the price levels are sometimes fuzzy, killing off stops.