Macd
- Thread starter wanderer
- Start date
Profit taking.
Regarding the zero line cross being late, this is a very debatable subject. You know those divergences that keep going for a while creating more divergences before finally reversing? Waiting for the zero line cross or a trend line break of some sort can help on these occasions.
Yes, I am familiar with those. Yes, in those cases the zero line filter would be good. Or, enter earlier and move stop to breakeven sooner resulting in breakeven trades is another alternative. I traded RD's when I traded the euro/usd. I found the zero line to be a bit slow for the market and timeframe I traded. Of course, there is no right or wrong answers here. That rule just did not suit me.
As far as profit taking. Since Rd's for me were not very reliable setup, I needed larger return/risk trades. 1R trades would give me a negative expectancy. For exit strategy I like to give the market plenty of room for growth. I go far larger trades. I get a lot of breakeven trades, but the more prices move then the less profits I'm willing to give up. This is my style.
Ah yes andy. Good observation.
Being that trading is an ongoing learning process (even after you can make some money) the search for alternative strategies and ideas can only help traders to adapt to different trading environments.
So, discussing profit taking should be very productive if some stimulating discussion can get underway.
Now, relating this to MACD for example, a divergence will signal that some kind of slowing of the current price action is forthcoming. The challenge is:
Will it just pause / correct through time
Will it reverse / A small correction
Is this the mother reversal
So your profit taking will coincide with one of these scenarios in some way,shape or form.
As you mentioned, it sounds like you keep a pretty tight stop to not let the price move against you on false signals and let the ones that are going to rip in your favor have a nice run. (don't know if you're trading from MACD divergences or not)
Myself, I like to take a quick profit/scalp so that even if there is just a small correction I can still get my portion and get out. Now the pause / correction through time that is flat/sideways movement will get me every time but, hey that's trading.
Being that trading is an ongoing learning process (even after you can make some money) the search for alternative strategies and ideas can only help traders to adapt to different trading environments.
So, discussing profit taking should be very productive if some stimulating discussion can get underway.
Now, relating this to MACD for example, a divergence will signal that some kind of slowing of the current price action is forthcoming. The challenge is:
Will it just pause / correct through time
Will it reverse / A small correction
Is this the mother reversal
So your profit taking will coincide with one of these scenarios in some way,shape or form.
As you mentioned, it sounds like you keep a pretty tight stop to not let the price move against you on false signals and let the ones that are going to rip in your favor have a nice run. (don't know if you're trading from MACD divergences or not)
Myself, I like to take a quick profit/scalp so that even if there is just a small correction I can still get my portion and get out. Now the pause / correction through time that is flat/sideways movement will get me every time but, hey that's trading.
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Yes;
however you may want to ponder that General Patton,
General Gideon, General ''Storman Norman ''differ in plans.
Do plenty of research;
and skip the CD part except @ the bank and put the moving averages [ma] , like 50 dma under/over price. Do not overtrade
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The plans of the diligent tend only to advantage.
Solomon, peaceful, trader/investor king .
tradersaavy,
Agreed, learning process is a never ending process...
No, I'm trading something else that hasn't been mentioned here. It's a retracement type method.
As far as your question. I don't know. I'm not aware of such things. I just try to move my stop to breakeven to cut down on false signals, then I give prices enough room to capture the "mother of all trades." I'm not exactly going for homeruns because the british pound is very volatile. I can afford lots of breakeven trades and to be patient for profitable trades.
You're trading a different instrument in a smaller timeframe. Maybe smaller profits are better, I don't know.
My idea is that things of what you mentioned are not possible. Maybe this is because I am not aware of such advanced things. I just come to accept that I can't have and eat the cake at the same time. For my particular style I will do what I can to make it better. I just don't know if we're in a range bound market condition, or if that new trend is about to happen. My style is to capture that new trend.... if it happens. I don't know when it will.
I heard there's a lady at woodies forum. She gets her entry using cci at one timeframe, then she zooms out and follows her exit strategy at a bigger timeframe. She's going for larger trades too. I actually had that same idea, until a buddy of mine that trades woodie's system told me someones doing it! Get good entry at a small timeframe, then zoom out and see if it develops into a good trend. This method would leave a lot of money on the table.
Same problem that I have, but as prices move towards my desired profit area I give less and less up.
I heard ATR's are good for profit taking. It evolves as market volatility evolves.
What you mentioned is interesting. I wonder if someone knows some ideas that accomplishes those needs.
Andy
Agreed, learning process is a never ending process...
No, I'm trading something else that hasn't been mentioned here. It's a retracement type method.
As far as your question. I don't know. I'm not aware of such things. I just try to move my stop to breakeven to cut down on false signals, then I give prices enough room to capture the "mother of all trades." I'm not exactly going for homeruns because the british pound is very volatile. I can afford lots of breakeven trades and to be patient for profitable trades.
You're trading a different instrument in a smaller timeframe. Maybe smaller profits are better, I don't know.
My idea is that things of what you mentioned are not possible. Maybe this is because I am not aware of such advanced things. I just come to accept that I can't have and eat the cake at the same time. For my particular style I will do what I can to make it better. I just don't know if we're in a range bound market condition, or if that new trend is about to happen. My style is to capture that new trend.... if it happens. I don't know when it will.
I heard there's a lady at woodies forum. She gets her entry using cci at one timeframe, then she zooms out and follows her exit strategy at a bigger timeframe. She's going for larger trades too. I actually had that same idea, until a buddy of mine that trades woodie's system told me someones doing it! Get good entry at a small timeframe, then zoom out and see if it develops into a good trend. This method would leave a lot of money on the table.
Same problem that I have, but as prices move towards my desired profit area I give less and less up.
I heard ATR's are good for profit taking. It evolves as market volatility evolves.
What you mentioned is interesting. I wonder if someone knows some ideas that accomplishes those needs.
Andy
I like your post. I just wanted to chime in on what I do and how it differs from what you mention. I use a bigger timeframe to get an overall bias of the market. I then use the shorter timeframe for entries and stops to catch a bunch of the longer timeframe trends.
I have never been able to really put it all together where I can scalp within the overall position trades as some very accomplished traders do; Grob109, Scientist, AMT.
I think that is the ultimate goal. Have position trades and scalping within your overall position to maximize gains.
Nwbprop....
I mainly use the 5 min with the 15 min as a "bigger picture" look....the 5 min is the signal generator as long as it is in line with the 15 min.
Others.....
What did waiting for a "Zero Line" break do for you here...
http://www.ttrader.com/mycharts/display.php?p=29858&u=cktrades&a=CK Trades&id=1303
http://www.ttrader.com/mycharts/display.php?p=29859&u=cktrades&a=CK Trades&id=1303
waiting for "zero line" breaks is very important after long trending periods or after large range quick moves (like a big drop day....do not enter any LONG's until you have an upward zero line break). Now there are times when I will enter trades from a 1/2 MACD "Peak" or "Valley" value (when the MACD signal line has reached an area that is 1/2 the distance from the top of the peak and the zero line....I draw a small horizontal olive colored line once I have a peak formed as the MACD hooks down so I can see what the peaks highest "value" was....just the opposite for a "valley" to go LONG) prior to the zero line being reached.....this all depends on what the range has been for the day and how volume flow changes during the "peak" or "valley" forming.
http://www.ttrader.com/mycharts/display.php?p=30488&u=cktrades&a=CK Trades&id=1303
this was a good "MACD 1/2 peak value" entry about 14:50 this day for a SHORT.....
http://www.ttrader.com/mycharts/display.php?p=29810&u=cktrades&a=CK Trades&id=1303
and here was a LONG at about 09:50....a "MACD 1/2 valley value" entry....
I mainly use the 5 min with the 15 min as a "bigger picture" look....the 5 min is the signal generator as long as it is in line with the 15 min.
Others.....
What did waiting for a "Zero Line" break do for you here...
http://www.ttrader.com/mycharts/display.php?p=29858&u=cktrades&a=CK Trades&id=1303
http://www.ttrader.com/mycharts/display.php?p=29859&u=cktrades&a=CK Trades&id=1303
waiting for "zero line" breaks is very important after long trending periods or after large range quick moves (like a big drop day....do not enter any LONG's until you have an upward zero line break). Now there are times when I will enter trades from a 1/2 MACD "Peak" or "Valley" value (when the MACD signal line has reached an area that is 1/2 the distance from the top of the peak and the zero line....I draw a small horizontal olive colored line once I have a peak formed as the MACD hooks down so I can see what the peaks highest "value" was....just the opposite for a "valley" to go LONG) prior to the zero line being reached.....this all depends on what the range has been for the day and how volume flow changes during the "peak" or "valley" forming.
http://www.ttrader.com/mycharts/display.php?p=30488&u=cktrades&a=CK Trades&id=1303
this was a good "MACD 1/2 peak value" entry about 14:50 this day for a SHORT.....
http://www.ttrader.com/mycharts/display.php?p=29810&u=cktrades&a=CK Trades&id=1303
and here was a LONG at about 09:50....a "MACD 1/2 valley value" entry....