Macd

JC,


You are right on the money with about everything you asked. If I do the "MACD 1/2 Value" entry (lower probability....because I need the recent trend change to hold to be profitable), then I like to see the "zero" line cross at some point for confirmation. This may be quick or it may be over an hour of time....it all depends on how high/low the MACD value achieved just prior to the "hook" and then trend change. The best entries many times are the "zero" line crosses when the MACD is just hanging around the zero line and then it breaks through and runs.

Today is boring as heck so far with a very tight range so I am jumping back and forth from one direction to the other as the MACD plays the "zero" line fairly close.....


http://www.ttrader.com/mycharts/display.php?p=31149&u=cktrades&a=CK Trades&id=1303

I have done a few "1/2 Value" and "zero" line break entries today as this market is probably digesting the great run we had Friday......so a day like this I can live with, as I am still able to accumulate a few points here and there....always ready (and usually in) for the breakout move if we get one.

BTW, because of the very tight range we have here today, I have been pulling 60% of my positions at +1.00 pt and the next 20% at +1.50 pts (only hit this target twice so far today....very tight day). I have one loser so far today at -.25 as I missed a tick on a reversal.
 
It is better to tell people you learned from Traders International. Those macd and stoch value, then you modified.

[/B][/QUOTE]:)

Quote from AMT4SWA:

Wanderer - your questions -

(1) what the success rate when using MACD
(a) zero-line-break entry ?
(b) half-peak break entry ?

(2) What's the reason for using both DMI and MACD for your entry signals ?

please advise.

A. - I have learned the behavior of this MACD set-up over time so I have a very good success rate with the MACD/Stoch combo that I use.......these indicators are like your kids when you spend a lot of time with them.......you know when they are telling the truth and you know when they are BS'ing you....LOL!

A. - The "zero" line break is a significant event when you have other supporting inputs.....volume flow....Stoch readings.....recent previous price action S/R levels. As this is not an EXACT science when entering trades, you are just looking for a preponderance of evidence in your desired trade entry direction prior to the actual entry.......all probabilities.

A. - The "1/2 MACD value" entry is more of a lower probability entry and I only use it when everything else looks good to me (like, what is the Stoch/Volume/Price action doing....if I like what I see then I enter a trade off this criteria). This works best when we have the MACD at least beyond +/- .50 (if less then this value, I just wait for the zero line break) . This method really rocks when the market is in a sideways oscillating type day with a tight range (like congestion or consolidation days after a big run up or down). Again like other aspects of all trading methods, I know from experience when to use which type of entry. I will say though, that the "zero" line break entry all by itself is very strong method (how more simple can you get?) as a person gets some time under their belt using it.

A. - The DMI/ADX you can ignore......that was just on the chart for something I was trying to show someone else.....use the 5,5,2 Stochastic as your prom date for Mr. MACD.......just make sure he brings her a flower! :-)





tradersaavy - I did some back testing for these targets....actually my "automated" version of this strategy goes for only 3 ticks and then pulls off 75% of the position, and then lets 25% ride with a combination of exit possibilities.....this way I have a majority of the position pulled with a very high probability target for a very good profit hit rate. :eek: :eek:
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:)
 
Manz66,


Actually not even close.....take one of their chart/indicators and compare it to the 4,13,1. TI's MACD setting is very different from mine and the 5,5,2 (or for some 5,5,3) Stochastic setting is nothing special.....been around for a long time. :)


Sorry....another negative cynic $hot in the a$$.....with his own gun! :eek:

BTW, as I have very recently stated in a post here about the TIMES method (just last month), I did not feel this method was good to use.....so why modify something that does not work??????




AMT4SWA


Registered: Apr 2002
Posts: 1076


01-31-05 11:55 PM

NewZealand,

I would not spend the $$$ for the course if I was you (way too costly). The strategy has decayed over the last year or so and very strong trends are rough with the times method (you may have 4 or 5 multiple divergences prior to the price action actually reversing......they get into the trade after only a double divergence). Also when the market is in a choppy 4 point range before a possible breakout you can get hacked to death with the times system. Plus going for 2 points for your first profit target is insane IMO with some of the trade days we have.............tighter volatility kills these systems. Maybe when volatility comes back one day then the times will work better?

Heck a lot of my discretionary trading has only a +1.0 and then a +1.50 point profit target for my first two primary targets.....waiting for 2.00 points is just not a good idea IMO for all trades entered. Here is the type of day that kills times method trading.....

ww.ttrader.com/mycharts/dis...0Trades&id=1303[/url]

you need quick "in and out" ready to reverse at a moments notice strategies in the chop shop of many current trade days. If you can't hang in the chop, then when you do get a small breakout you need every bit of it to dig you out of the hole......

ww.ttrader.com/mycharts/dis...0Trades&id=1303[/url]



AMT OUT!
 
Quote from AMT4SWA:

Manz66,


Actually not even close.....take one of their chart/indicators and compare it to the 4,13,1. TI's MACD setting is very different from mine and the 5,5,2 (or for some 5,5,3) Stochastic setting is nothing special.....been around for a long time. :)


Sorry....another negative cynic $hot in the a$$.....with his own gun! :eek:

BTW, as I have very recently stated in a post here about the TIMES method (just last month), I did not feel this method was good to use.....so why modify something that does not work??????
Quote from AMT4SWA:


Look I respect you as a trader. But... here is Times method setting for macd by vision trader posted 6/12/03:

http://elitetrader.com/vb/attachment.php?postid=271014
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Quote from AMT4SWA:

Manz66,

BTW, as I have very recently stated in a post here about the TIMES method (just last month), I did not feel this method was good to use.....so why modify something that does not work??????

Heck a lot of my discretionary trading has only a +1.0 and then a +1.50 point profit target for my first two primary targets.....waiting for 2.00 points is just not a good idea IMO for all trades entered. Here is the type of day that kills times method trading.....
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by you which is basically Times method, when you adviced here (12/13/03)

"Here are some STOCH and MACD settings that work VERY GOOD for finding divergence plays during the trade day...I have a few examples of how these indicators can be used to go for +2.0 point hits during the day (+2.0 pts for the first 1/2 of your position and then let your second half ride with a trailing stop).

The Stoch setting is : (5,5,2)

The MACD setting is : (4,13,1) .....some use (8,11,1)"

http://www.elitetrader.com/vb/showthread.php?s=&threadid=25728&perpage=6&pagenumber=2
 
Manz66,


From the only person I know to have ever actually taken the TI course, has told me that their MACD settings are a proprietary setting which is included with the paid for course/software package which you can run on Esignal or RealTick. If they have changed this to just using a "generic" MACD (not a proprietary MACD oscillator setting) setting of 4,13,1 then I will sue them unless they pay me licensing rights fee's......JK! Maybe they have wised up to the changing market (less volatility) from when they had first pitched their product....and I am sure they have tweaked their inputs over time, but why don't you call TI and ask them what their MACD settings are....LOL! They probably will not tell you because they use a proprietary setting.


I have been using 4,13,1 for many years and I would be very impressed if this is what TI is ACTUALLY using now in their paid for course chart software set-up. Your chart shot image is from a tradestation Screen....does TI even have a software package for TS (I know of Esignal and Realtick only at the time the person I know took their course)? Also over the last few years I have openly posted my MACD/Stoch settings in several different threads, and I have received a ton of PM's with questions about these settings.......so I know these have been out there for any one to use (they did not need to pay $3,000 for how to use basic MACD and Stoch settings in technical analysis based trading....just read a $50 book).

My understanding of the TIMES method is to wait for "double peaks/valleys" from which to take "divergence" trades from, and that does not make any sense to me.....My MACD entry style is very different from this........(todays action so far)......

http://www.ttrader.com/mycharts/display.php?p=31186&u=cktrades&a=CK Trades&id=1303

I have met Mr. Taghechian at the 2003 Las Vegas Online Trade Expo (he is Persian and I am 1/2 so I stopped by to say hello out of custom....I also talked with Mr. Hamzei) for a few minutes and I can say that he himself told me they use a "proprietary MACD setting" and that is part of their package. I know where I found this MACD setting and it was NOT from TI.
 
Manz66,


First of all I want to formally apologize for the "$hot in the a$$ with his own gun" statement....that was over the line.....I was a little fired up about something the other night when I first read your posting....sorry!

OK....when I saw the name "Vision Trader" from your last posting that sparked my memory......here you go direct from "Vision Trader"......

____________________________________________________
VisionTrader


Registered: Jun 2003
Posts: 722


07-13-03 07:59 PM

I tend to side with Yannis on this subject also. I think TI is pretty good about providing on-going support also and I don't think there are any extra charges for this. You can actually trade the set-ups live on the calls with Roger.

I did not purchase their system. I developed my own and it has served me pretty well so far. I did incorporate alot of their simple ideas into my own system. Like Yannis, I try to filter the trades and not just take every set-up on the M1 chart. Don't take the first signal against the trend, etc.

____________________________________________________



There you go...."His own system" (not TI's)......I thought I recalled him from that time period (as I was placing my MACD/Stoch settings in numerous postings and PM's).


Well call it even.....Have A Great Day!

AMT
 
Quote from AMT4SWA:

Manz66,


From the only person I know to have ever actually taken the TI course, has told me that their MACD settings are a proprietary setting which is included with the paid for course/software package which you can run on Esignal or RealTick. If they have changed this to just using a "generic" MACD (not a proprietary MACD oscillator setting) setting of 4,13,1 then I will sue them unless they pay me licensing rights fee's......JK! Maybe they have wised up to the changing market (less volatility) from when they had first pitched their product....and I am sure they have tweaked their inputs over time, but why don't you call TI and ask them what their MACD settings are....LOL! They probably will not tell you because they use a proprietary setting.


I have been using 4,13,1 for many years and I would be very impressed if this is what TI is ACTUALLY using now in their paid for course chart software set-up. Your chart shot image is from a tradestation Screen....does TI even have a software package for TS (I know of Esignal and Realtick only at the time the person I know took their course)? Also over the last few years I have openly posted my MACD/Stoch settings in several different threads, and I have received a ton of PM's with questions about these settings.......so I know these have been out there for any one to use (they did not need to pay $3,000 for how to use basic MACD and Stoch settings in technical analysis based trading....just read a $50 book).

My understanding of the TIMES method is to wait for "double peaks/valleys" from which to take "divergence" trades from, and that does not make any sense to me.....My MACD entry style is very different from this........(todays action so far)......

http://www.ttrader.com/mycharts/display.php?p=31186&u=cktrades&a=CK Trades&id=1303

I have met Mr. Taghechian at the 2003 Las Vegas Online Trade Expo (he is Persian and I am 1/2 so I stopped by to say hello out of custom....I also talked with Mr. Hamzei) for a few minutes and I can say that he himself told me they use a "proprietary MACD setting" and that is part of their package. I know where I found this MACD setting and it was NOT from TI.
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Good stuff. I use an ole school 3/10/16 simple macd and it throws off the same patterns. 4,13,1 is good stuff. Out of curiousity, have you read Chick Goslin's book? Full of great ideas if you use this type of indicator.

Cheers
TGM
 
Quote from AMT4SWA:

I have never read any of his books but I will now check it out...
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Also his latest book "Trading Day By Day" will be very good for you if you like indicators. An excellent book about trading anyway, even for those of us who don't.
 
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