Simple Profitable Method

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We haven't discussed divergence much.

I've been reading up on stochs and macd divergence. It you notice the higher low at the open and compare this to the previous higher low last Friday. There was signficant divergence between lows in price and the lows on the indicator. The price made a higher lows and the indicator made a lower low.

Speaking of divergence; A better example occurred later, take a look and notice the divergence on the macd between the low at the open and the low at 13;00. The price had a higher low and macd low was well below the low at the open. That was very positive divergence.

The way that market sold off after lunch I thought we were heading back to 778 fast. But no!!! I didn't trust the divergent signals.

Anyway if the price tops are making higher highs but the indicator is not this is supposed to signal direction change. In our examples the price was making higher lows and the indicator was very positive in that it made lower lows at the open and at 2:00.

Which comes first does the price move the indicators or do the indicators move the price?
 
If you go to page 371 you can see my MACD had already crossed at the bell, MetaStock Pro's Mickey D must be slightly different or you start your charts at a different time. I start them an hour before open when the reports come out
 
Quote from Trader28Lite:

If you go to page 371 you can see my MACD had already crossed at the bell, MetaStock Pro's Mickey D must be slightly different or you start your charts at a different time. I start them an hour before open when the reports come out
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You are absolutely right. TS lets us choose between ER2 daily which starts charting at the bell and a 24 hour ER2 that's continuous - I switched to the continuous ER2 and came up with your MACD (attached).

I remember you mentioning this several times many, many pages ago and I guess I just blanked it out - sorry.

I've added three vertical lines to the attached chart - each vertical line shows the time at the top. The entry looks like it would be 8:38 instead of 8:40 - our clocks shouldn't be that different (especially only 10 minutes after the bell).

Was 8:38 the signal and 8:40 the trigger that verified the entry?

Also, still wondering what you used for your exit.
 

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Yeah 8.40 was the trigger, you could have jumped in a minute or so early as it was breaking up through 3SMA+2 as it was pretty obvious what it wanted to do but thats a personal choice/feel for the market, the hard trigger was at 8.40


Ok the suns up... I have to go to bed so I can prey on young virgins when night falls
 
According to this method, when re-entering a trending market do you not enter a trade if in addition to a price pullback past the 3TMS+2 line (and prior to its again crossing the 3TMA+2 to continue the trend) the 8TMA+2 line is also breached?
 
Thanks T for sharing the keys to your gold.

There are so many self-absorbed, egotistical traders out there who think Mr. Market is so efficient that he's hanging on their every word - this is a hugely refreshing thread that you've created.
 
hey jimns, I agree that in years of trading I've never seen anybody more helpful than T28 has been. His openness has brought a lot of good discussion and education. This thread has brought a lot of focus into my decision making compared to what I used to do.

Your right that it's very anal that more traders are not more straight forward discussing specifics. That's because most people are full of shit IMHO.

somewhere early in the thread someone thought if we could get enough guys together taking the same signals spm could actually influence the market. We.ll get us a little 2 point spike then fade it ourselves to screw everybody else.

Where the hecks Snarly and BB and JimyJam?
 
Quote from beeflover:

somewhere early in the thread someone thought if we could get enough guys together taking the same signals spm could actually influence the market. We.ll get us a little 2 point spike then fade it ourselves to screw everybody else.
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That's a really great idea beefy - you, Snarly, BB, and JimyJam get all over it tomorrow morning at 8:40. I'll be right behind you. :p

J
 
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