Simple Profitable Method

[Bearbelly]

Snarlyjack

You might try waiting for a pullback after the crossover. This is what I do. This morning:

 

[Bearbelly]

This afternoon:

 

[Razor]

Quote from Bearbelly:

Snarlyjack

You might try waiting for a pullback after the crossover. This is what I do. This morning:

I have thought about the 'wait for a pullback' idea but at the end of the day isn't the whole idea to jump on the train while the momo is moving on the cross and won't most of the best trades and winners just bust through the zero line and price just follow through without any pullback ? Food for thought....

 

[stockgirl]

Quote from snarlyjack:

Trader28...First of all, I want to thank you for all your posts
and all your help!!! This is my first post as I thought your strategy is very interesting.

I've been trading your strategy just like you have posted. I've read through all the pages about 3 times now and have been trading on the YM, two minute charts. I use candlestick bars.

It seems like everytime I place a trade (zero line cross) I just place the trade and all of a sudden it bounces up/down on me
and I end up with a $20-$30 quick loss. I have yet to have it complete its pattern for a 10-20 point gain. I keep taking 5 point
losses.

In my frustration, I thought I would post my first post on elite trader. And see what kind of help you would suggest for me?

By the way I have been lurking on Elite Trader for about 6 months
now and what a great site it is. I feel lucky to have accidently found it.

ThankYou one and all!!!

snarlyjack

save a little coin and test your method on DIA...

 

[DonKee]

Quote from Esteban:

Donkee, thanks for your posts. I have a couple of questions for you: What time zones do your times represent? Also, what are the two numbers that follow your times.
Thanks,
Steve

Time zone is eastern standard time, same as new york

3/5 means 3 winners out of 5 trades or 3 for 5, etc.

 

[jack411]

Quote from snarlyjack:

Trader28...First of all, I want to thank you for all your posts
and all your help!!! This is my first post as I thought your strategy is very interesting.

I've been trading your strategy just like you have posted. I've read through all the pages about 3 times now and have been trading on the YM, two minute charts. I use candlestick bars.

It seems like everytime I place a trade (zero line cross) I just place the trade and all of a sudden it bounces up/down on me
and I end up with a $20-$30 quick loss. I have yet to have it complete its pattern for a 10-20 point gain. I keep taking 5 point
losses.

In my frustration, I thought I would post my first post on elite trader. And see what kind of help you would suggest for me?

By the way I have been lurking on Elite Trader for about 6 months
now and what a great site it is. I feel lucky to have accidently found it.

ThankYou one and all!!!

snarlyjack

Ive been trading the ER2, ES, and YM

For the YM and ES, here is what I suggest:

These both dont seem to do well with zero line crosses. Wait for the MACD cross to be below zero for shorts, or above zero for longs.

You can also do what I do, add a slow stoch (15,5,3) This can confirm momentum on MACD crosses that may not have the zero confirmation.

ie. MACD crosses to go short, but the cross was ABOVE the zero line, so it failed the zero confirmation. BUT, the slow stochs were obviously showing a downtrend, so the trade was valid and a good one. This happened today (10/18) early (around 9:45ish?) - whenever the first down move was.

Youre right about the zero line cross though, it doesnt seem to work most times on the YM or ES, atleast not as well as it does on the ER2...

 

[jack411]

correction to my previous post:

the slow stoch settings should be 15,5,2

 

[Bearbelly]

Nice easy trade this morning. Never took any heat. (YM)

 

[tyler19]

what macd settings beerbelly? what price did you get in on the long?

 

[Bearbelly]

Im using the defaults as per Trader28. I actually had two trades as I am using a 20 pt. target. First trade entry 12043 exit 12063. Second trade when it pulled back to 9sma again entry 12056 exit 12076. Wish they all worked that well. I am still on simulator. Just switched over to YM and want to give it a few days before I go to cash. ER2 was just too jumpy for me. This last cross at 11:05 is the kind you have to be leery of. Crossing at shallow angle in middle of daily range is not what I like to see.