i agree. also, i never said i was trading solely based on the macdI know....
“One mans trash is another mans treasure” doesn’t apply to indicators.
I’m on planet earth and don’t waste you time paper trading. Start live trading something even if it’s only one share.
You want an edge? The edge is you, you have to know when to get out of the trade if it goes against you. No second guessing. GTFO
Don’t think about how much $ you are going to win, think about how much you are willing to loose.....Preservation of capital is number one.
PS: watch price and volume
macd
- Thread starter notafool
- Start date
If you're using it for equities he is right, it's useless. I know algo traders who use it for forex but it's not a main indicator and they don't use intraday time frames.
i am using it for options on stocks. seems to be working for now. why do you say that it works better on forex and not stocks?
the MACD works differently with various instruments
on forex do NOT waste your time not enough movements percentage wise, altho it works great but can leave you poised to wipe out in one bad move
in commodities works good also
in stocks works the best based on oercentage moved and most importantly based on the fact most have options
now within each category it works on some and on some it doesnt and it works phenomenally well on others, but based on backtesting which can change but can be decently reliable
take a look at SQ for example and OSTK, near 90% accuracy with the losers hardly losers. They key with this indicator as any other indicator is to find on what it works which is the hardest of them all because even that can change thus its constant search, the above mentioned stocks for example work good where if u take a look at kool its horrible, some filters can be low fsharws/mkt cap but those are not must but are generally better, how low is low ? Depends on how known is the name, apple for example is the biggest of the biggest yet the thing eorks good on it why? Because the whole world trades apple, thus the search and filtering continues
good luck
most importantly it doesnt keep you wrong for too long as other indicators do such as rsi which in my opinion makes MACD better,
with options it can be even better because your never set too lose more than the premium and in the case of whipsaw you get to possibly lose less because time premium is left in them
i have been using macd with rsi and when rsi is on extreme overbought which usually happens at least once a day then it is almost never a whipshaw. how do use the rsi with macd?
which options do you find the best to buy and sell a couple of minutes later based on macd and rsi? itm atm otm? and how much time to they have, a day week month etc.?
thanks (maybe ill send you a commision from all my profits!!!)
Well then. This is terrible advice.
Do paper trade. Sometimes I'll paper trade with a notepad to test my instincts. When a stock is not within my entry parameters but my gut feeling says it'll go my way. I tell my gut "I'll give you the satisfaction of saying 'I told you so'." by writing down the time, date, and prediction.
So far my gut has lost 50% of the time, proving my point. I don't want to toss a coin, I want to toss a loaded coin.
i do NOT use rsi at all
also you seem to be day trading i do NOT day trade at all i holds
Months so maybe everything i wrote is not applicable for you
i actually only trade longer trades for now, although the backtesting i was doing was for day trades. for longer trades i base them on fundamentals. what do you use to compliment the macd on your (non day) trades?