SPM discussions

[Quark]

I took the same short in the ES almost the same way, but I waited for a touch of the 9 period SMA instead of the 3+1.

On the chart the green line is the 9 period SMA and the dashed blue line is the 3+1. (This is OEC's platform.)

When I'm more comfortable with this, I can see a benefit to multiple contracts and scaling out.

BTW, my stop is 3 points and profit target is 3.75 for now. I may tighten the stop a bit with touches of the 9 SMA because if if doesn't hold, the trade is usually a bust anyway.

<img src=http://elitetrader.com/vb/attachment.php?s=&postid=2152576 width=800>

 

[GiantDog]

Quote from IanMacQuaide:

10:15 CST, 2 min. chart, MACD crosses DOWN on the YM. I'm getting murdered on this thing. Not until price bounced off the 9SMA twice did it finally start moving down seriously.
I'm on SIM till I get this figured out.
I'm lost.
Can anyone offer some helpful insight?

Isn't the moving average supposed to be a 3sma or 3 adaptive average with a displacement of 1? Another thing that concerns me is that the Macd lines were both going up at the time even though they were in negative territory. Does it matter if the Macd lines are going up instead of down even though they were in negative territory? Also, it looked like the fast line was about to cross the zero line to the upside. Woudln't that of been a trade to the upside if it broke the zero line?

woof woof

 

[GiantDog]

Quote from GiantDog:

Another thing that concerns me is that the Macd lines were both going up at the time even though they were in negative territory. Does it matter if the Macd lines are going up instead of down even though they were in negative territory?

woof woof

I will repeat this part in case their is a genius on this board that can answer it.

woof woof

 

[GiantDog]

I just wanted to see if you guys were trading WITH the Macd lines and not against them even though I know you CAN do that when the market is heading strongly in one direction. (if you want to that is). Right now, I just
missed a cross to the upside. Back to trading.

woof woof

 

[MandelbrotSet]

Quote from GiantDog:

Isn't the moving average supposed to be a 3sma or 3 adaptive average with a displacement of 1? Another thing that concerns me is that the Macd lines were both going up at the time even though they were in negative territory. Does it matter if the Macd lines are going up instead of down even though they were in negative territory? Also, it looked like the fast line was about to cross the zero line to the upside. Woudln't that of been a trade to the upside if it broke the zero line?

woof woof

The moving average is a simple moving average set to 3 periods, with an offset of 1 period forward.

I take the crossovers which are supported by price action crossing the sma3,1, even if momentum is in negative territory.
***
Note: I specificially made this post becasue it bears repeating.

 

[MandelbrotSet]

With about 4 or 5 trades to the downside (after the initial opening chop), which worked out for 2pts or more under our collective SPM belts today, you really would not have had to take the trades to the upside, even though they did work out well ... and that's just the ES I'm talking about.

 

[Stok]

Quote from MandelbrotSet:

The moving average is a simple moving average set to 3 periods, with an offset of 1 period forward.

I take the crossovers which are supported by price action crossing the sma3,1, even if momentum is in negative territory.
***
Note: I specificially made this post becasue it bears repeating.

What are the MACD settings?

 

[GiantDog]

Quote from Stok:

What are the MACD settings?

I believe they are 12.26.9

 

[IanMacQuaide]

Quote from MandelbrotSet:

The moving average is a simple moving average set to 3 periods, with an offset of 1 period forward.

I take the crossovers which are supported by price action crossing the sma3,1, even if momentum is in negative territory.
***
Note: I specificially made this post becasue it bears repeating.

Could you elaborate on this please Mandel?
Say the 2 minute MACD crosses up, and the 10 min. MACD shows UP, then I wait for price to retrace to the 3+1SMA before entering?
Ian

 

[MandelbrotSet]

Quote from Stok:

What are the MACD settings?

That's a good question.

As GiantDog said, they are 12, 26, 9.

I've done a lot research on Google since Trader28's SPM for reading price action started up again, and found a paper showing the different optimized settings for the different commodities.

It seems that this is the setting which produces the most consistent results across the board for all the instruements traded, and that is why it is used.

I'll look around to see if I can find the paper.

Regards