Simple Profitable Method

[DonKee]

Quote from Razor:

Hi Donkee,

I appreciate the reply but IMHO the very word 'divergence' means something is going one way and something is going in the opposite direction.....so in theory price should be going one way (ie: higher high) and MACD should be going another way (ie: lower high). Of course there is no need to get hung up on the details but perhaps you should just note that some ZLC's are taken after divergences as well as some are taken after retests of prior lows or highs.

Please don't take any of this the wrong way as your post was excellent I just don't want some rookies getting confused or looking for divergences only when they can infact take a ZLC after true divergences as well as ZLC's after tests of prior highs or lows.

Thanks again, cheers

Yes, I will take these ZLC trades after either a divergence between price and macd or after a re-test of a high/low of price with a divergence.

Good point.

 

[Razor]

Hi Donkee,

Thanks for the reply.

Do you take ZLR on the faster MACD LBR ? or just on the slower one ?

Thanks

 

[DonKee]

Quote from Razor:

Hi Donkee,

Thanks for the reply.

Do you take ZLR on the faster MACD LBR ? or just on the slower one ?

Thanks

I'm taking all signals off of both macds, although most will come from the faster one.

 

[Razor]

OK thanks,

Did you just get a long signal at price:

767 10:20am EST bar ? fast MACD ZLC after divergence ?

Thanks

 

[DonKee]

Quote from Razor:

OK thanks,

Did you just get a long signal at price:

767 10:20am EST bar ? fast MACD ZLC after divergence ?

Thanks

Yes, but did take a 1 pt loss.

Shorted at 766.1 and bailed at 765.00. We hit the early low and just kept bouncing, never got to my 764.60 target which needed a 764.5 bid to get filled, so I bailed with 1.10 instead of a potential 1.5 profit and have 2 trades, so far...basically break-even.

Will wait for the next signal.

 

[Razor]

Was the 766.1 short based off the fast MACD crossing back down through the zero line ?

I didn't see any form of divergence before the cross back down but I guess a move up through and then right back down through is like a fake breakout / fake ZLC move so play can be reversed ?

Thanks

 

[DonKee]

Quote from DonKee:

Yes, but did take a 1 pt loss.

Shorted at 766.1 and bailed at 765.00. We hit the early low and just kept bouncing, never got to my 764.60 target which needed a 764.5 bid to get filled, so I bailed with 1.10 instead of a potential 1.5 profit and have 2 trades, so far...basically break-even.

Will wait for the next signal.

Target hit for a 1.5 profit, but I'm fine with only getting 1.10.

Sometimes I will weigh the reward of another .40 vs getting stopped out with a 1.00 loss and I'll just bail.

No problem...next trade on deck.

 

[Razor]

Quote from Razor:

Was the 766.1 short based off the fast MACD crossing back down through the zero line ?

I didn't see any form of divergence before the cross back down but I guess a move up through and then right back down through is like a fake breakout / fake ZLC move so play can be reversed ?

Thanks

 

[DonKee]

Quote from Razor:

Was the 766.1 short based off the fast MACD crossing back down through the zero line ?

I didn't see any form of divergence before the cross back down but I guess a move up through and then right back down through is like a fake breakout / fake ZLC move so play can be reversed ?

Thanks

Yes, it was ZLR trade. The ZLR can skim along the other side of zero for a few bars.

Remember, I'm just trying to scalp 1.50 points. I'm just looking to ride a "shot" of momentum.

 

[Razor]

Makes sense, thanks