This is a humorous post.
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Quote from GermanTrader:
Thank you. I have a confirm signal set that works well with this, even during the current demonic volatility.
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Care to share your confirmation signal?
As you can see from the thread it is an entry/exit method that uses the original default. You can google for the current one.
The entry is told to you and you are on your own for the exit.
Below, an illustration is used to provide the humor.
MACD stands for something. too bad it wasn't MADC.
The zero line crossove is sometimes used as a confirmation and rarely (except for T28) is used as a trading signal of any sort.
The DC is the anti-whipsaw trading signal as the humorous illustration shows.
It can be used for beginners and higher levels of trading. The indicator is missing from this illustration but it can be "seen".
to see it most clearly use a histogram of the difference of the fast line and the slow line.
Two SPM trades are represented on the chart: first a short near the end of the short trend and a long well after the price long trend began.
To keep this on the beginner level (where most traders begin to trade live) you want to use, within the indicator, its divergence then convergence characteristic. The post entry confirmation signal is the fast line crossing the slow line after an extreme on the fast line where its solpe comes to zero and changes the slope sign. On the not shown (for T28's reasons) histogram the switch from divergence to convergence is the peak and the trough of the histogram. The signal to go short is the peak and the signal to go long is the trough.
There is a companion indicator that leads this histogram reaching its signal points.
T28 may wish to post the original pm's sent to him when the SPM thread was first set up. They explain the above.
the humor of using the zero line crossove comared to the D then C signal point is obvious when you are logging profits.
For beginners this also provides both the entry and the exit. And , if desired, it can be traded as a beginner reversal strategy.
The annotations for SPM are in yellow and the annotations for the humor are in pink. The delay from the pink to the yellow is in gold and labelled. Never do reversal trading on SPM (this example is the beginning of the midday losses period for SPM.)
Final note: How does an SPM trader chose an appropriate exit for the zero line crossover of SPM. Hint trade SPM from yellow to pink as an entry exit trade. To make the profits after the exit until the next yellow signal do a reversal instead of exit and then use the next yellow as a very late confirmation of the reversal.
You can use other less peaking (and troughing) histogram mounds as a way to do reversals inside of the beginner reversals. In doing so it is a god idea to use the correct MACD default (see illustration) and to use the leasing indicator of the MACD once the default is correct.
You can log all of this as well to keep track of things.
