It's just years of experience telling me that these setups are the best, especially on a countertrend move, when there is a significant, isolated tail outside the BB. --In addition, the MACD was not in agreement with the other two setups. One other point, I always defer to reaction highs/lows first when analyzing, and then review the indicators. Reminder--I use indicators and price together.
The Trouble With Scribbles
- Thread starter Buy1Sell2
- Start date
Ok, Here is the Macd, two divergences, one with a crossover, so all three were in agreement, but no buy. So what is the value of the indicators? You apparently only use them on "profitable trades". And as much as you rant about lack of rules, you say "It's just years of experience". Sorry, but you lost me at hello.........
I've traded using MACD for decades. Discretionary trading has no entry or exit rules. It only has trade/risk management rules. It is an art. It cannot be automated. It is dynamic in time. It is not learned by reading books. It is learned by trading real money in the real market. It is learned by losing money.
The Scribble Method is full of rules. Yet is totally dicretionary. The Scribble Method is an art, yet makes appearances that it could be automated. The Scribble Method advocates rules , yet the students and educators all differ in interpretation and placement of scribbles and ranges. No one makes any real time trades using the Scribble Method. The system is an art. I don't like what I see.
B1S2, I understand if you are using indicators as a proxy or filter for price action. Here is another trader who does the same thing, but he states up front that price action is the key.
http://www.wattstrading.com/
http://www.wattstrading.com/
And as demonstrated here, it's always traded in hindsight. The advantage of the SLA is that one knows well in advance what trades should be taken and how they should be taken.
I have always maintained that I use a price/indicator combo.