Simple Profitable Method

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Trader28,

I am still using the macd 12-26-9 and the sma3 + 2, 100% for
all my trades. I basically trust it.

Question (?)... Do you watch the histogram at all? I've noticed
that if prices are going up and the histogram is trending down
that prices will start to break down.

Could you tell us about the macd histogram?

Thanks

snarlyjack
 
hey guys, anyone out there? take a look at a ten minute chart, looks like a head an shoulders top forming, we shall see. totally trendless now.
 
shoulda faded myself, stopped out break even

I just sold 819 though if this is a head and shoulders that should hold

it pays to fade all my trades I'm about to bust my sim account
 
Kinggyppo,

We might rally today. I try very hard to trade without any bias.
However, I am a "bear" at heart.

That's one of the big reasons that I trade the futures market
(YM) instead of individual stocks is that I can get short in
about 2 seconds.

In reality, I am looking for the market to break down big time
at any moment (maybe today) but I take it day by day.

snarlyjack
 
Quote from snarlyjack:

Question (?)... Do you watch the histogram at all? I've noticed
that if prices are going up and the histogram is trending down
that prices will start to break down.

Could you tell us about the macd histogram?
More...

Snarly

I know this question wasn't directed to me but I took the histogram out of my chart because it is nothing more than the difference between the MACD and the MACD Average and I can see that by watching the the width and direction of the two lines. I then added an invisible 10 min chart to my window and overlaid a second (visible) 10 in MACD to the 2 min MACD. I use dotted lines for the 10 min MACD so I won't confuse it with the 2 min MACD.

Anyway, eliminating the histograms freed up my MACD subgraph so I could overlay both of these MACD's on the same subgraph. So the end result is a 2 min chart with a single subgraph that shows both a 2 min and a 10 min MACD. Of course the 10 min MACD only comes up with a new point once every 10 min but the 2 min chart will connect the dots making it look like a continuous line - got to ignore that.

Hope you don't mind my weighing in on a question adressed to T28 but I've been following this 2 min/10 min MACD combination for a month now and have found it pretty useful.

J
 
I think it was Alexander Elder that was a big rap for the Histogram but he primarily used it with the standard Macd for highlighting divergence
 
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