Question for Grob/Hershey...

[tradingbug]

Thankyou Mak for what looks like another great tool. Hopefully, there are others who are further along in their progress and can continue with the discussions that are necessary for the clarity of understanding pace.

My current understanding(or lack of) is that pace and channels are intimately related. I am not sure how they are intimately related but I am sure it will answer itself with some work and experience.

I currently use the 10 min and 2 min pair as my base and really appreciate you making the prv tool flexible. Thanks again Mak

On a sice note, if anybody is using esig, please PM me.

 

[easyrider]

I remember Jack saying something awhile back like "when you see the first derivitive of the fast line of the macd peak then fall off you have just seen a leading indicator". Dont know if that is an exact quote but it is close. What Im trying to figure out is what is the first derivitive of the fast line? Is this the historgram? I am beginning to see that there is more to some indicators than meets the eye and the macd histogram I find particularly interesting. There are some very intersting divergences that show up regularly. I spent some time with LBR and one interesting thing she says is that using indicators can take some of the subjectivity out of trading which is pretty important, imo. If you have had a history of losing you will find all kinds of excuses not to take a trade. Watching those candles blink red and green is like sitting at an intersection with a malfunctioning traffic lite. You dont know what to do. Focusing more on the indicator can help, I believe.

 

[cnms2]

first derivative is the slope (i.e. of the MACD line)

using indicators can take some of the subjectivity out of trading: They filter out some noise (extract and process useful past data), but also filter out some information. To efficiently use an indicator you have to fully understanding it, how it is calculated, what does it show, correctly adjust its parameters to fit your time frame and purpose, then flexibly interpret its signals. Indicators are tools, and they are only as good as their user is skilled in using them.

Quote from easyrider:

I remember Jack saying something awhile back like "when you see the first derivative of the fast line of the macd peak then fall off you have just seen a leading indicator". Dont know if that is an exact quote but it is close. What Im trying to figure out is what is the first derivative of the fast line? Is this the histogram? I am beginning to see that there is more to some indicators than meets the eye and the macd histogram I find particularly interesting. There are some very interesting divergences that show up regularly. I spent some time with LBR and one interesting thing she says is that using indicators can take some of the subjectivity out of trading which is pretty important, imo. If you have had a history of losing you will find all kinds of excuses not to take a trade. Watching those candles blink red and green is like sitting at an intersection with a malfunctioning traffic lite. You dont know what to do. Focusing more on the indicator can help, I believe.

 

[easyrider]

Thanks for the reply but I dont think you read me correctly. I went back and found the quote to make sure I remembered it correctly. Here it is:

"Take the derivative of the fast line of the MACD and note that when it peaks and begins to lessen you have just seen a leading indicator signal."

He is talking about the derivative of "the fast line" which is the signal line. The MACD line would be the slow line wouldnt it? It may be that he mixed it up as he is prone to do at times when hes typing fast. This quote has stuck in my mind for quite awhile so I would like to get it unstuck.

 

[cnms2]

easyrider,

The first derivative of a function is its slope. I read Grob's sentence as meaning that the slope of the fast line starts slowing down (lessening), as in "diminishing momentum".

MACD includes both lines: the fast line (the difference between MAs), and the slower line (an MA of this difference).

I understand that Jack talks about the "difference" between the two MAs diminishing as being a leading indicator. It signals a change in momentum.

Quote from easyrider:

Thanks for the reply but I dont think you read me correctly. I went back and found the quote to make sure I remembered it correctly. Here it is:

"Take the derivative of the fast line of the MACD and note that when it peaks and begins to lessen you have just seen a leading indicator signal."

He is talking about the derivative of "the fast line" which is the signal line. The MACD line would be the slow line wouldnt it? It may be that he mixed it up as he is prone to do at times when hes typing fast. This quote has stuck in my mind for quite awhile so I would like to get it unstuck.

 

[nkhoi]

http://www.daytradingcoach.com/Course outline/MACD Part 1 -- Chart School.htm


when the terminology may cause some confusion I think looking at picture with all components side by side will tell who is the fastest.

 

[hypostomus]

I guess nobody ever heard of Newton. Insted of all this MA bullshit you might try looking at smoothed derivatives of PRICE. And remember that every classical trading function of a simple variable (like price) is a Kalman filter, a perfect solution to SOME collection of stochastic problems, but in your ignorance you just don't know what it is.

 

[ktmexc20]

Quote from hypostomus:

I guess nobody ever heard of Newton. instead of all this MA bullshit you might try looking at smoothed derivatives of PRICE. And remember that every classical trading function of a simple variable (like price) is a Kalman filter, a perfect solution to SOME collection of stochastic problems, but in your ignorance you just don't know what it is.

That's right people... Hypo's the man... all knowing and everyone else are ignoramuses'

Hype, I guess your trading has been so successful that you haven't been hangin' around lately.

Sorry for the digs, but....

Your bud,
MEX

 

[Thunderdog]

Quote from ktmexc20:

That's right people... Hypo's the man... all knowing and everyone else are ignoramuses'

Hype, I guess your trading has been so successful that you haven't been hangin' around lately.

Sorry for the digs, but....

Your bud,
MEX

You're assuming, of course, that successful traders come here to stay.

 

[ktmexc20]

Quote from Thunderdog:

You're assuming, of course, that successful traders come here to stay.

Not at all Tdog, It's just hypo and he gets from me what he gives to others. I actually like the guy's virtual personality to an extent, but otherwise he's been an ass.