When Indicators Don't Lag

[romik]

They are now. But if price doesn't continue its present course, the MACD will no longer show a divergence.

As I said, going long at the break of the line I suggested would carry no additional risk. But it's up to you.

Some do it at a break, some fish near previous support. We are talking ability to forecast and you asked for an example of a forecast prior to it happening, so that's exactly what I posted.

 

[dbphoenix]

A very "flexible" way of trading the MACD.

 

[romik]

Do you know why B1 is spot on? All he is saying follow the market's bigger turns and do not overcommit, that way you don't need to be a constant slave to ever changing market conditions and can treat trading without a PhD in finance or econometrics.

 

[romik]

A very "flexible" way of trading the MACD.

When you drive ona busy highway, do you ignore moronic actions of other motorists and let an accident take place or do you try and predict their actions based on their behaviour?

 

[dbphoenix]

I agree with following the larger turns and not overcommitting. I just don't see what indicators have to do with it. If somebody were following oil and wanted to buy via PA, he'd have bought the double bottom and subsequent rejection at 44 (the MACD would have been no help there). Buying at 50 is fine, but then one is facing tons of resistance at 55.

Of course, if you're planning on trading the range, that's another matter.

 

[Buy1Sell2]

Nobody is arguing that point, we all agree that indicators by definition will lag price, but at the same time there are instances where indicator patterns forecast future price action. But just like in price action only systems they don't always end up with a favourable outcome.

Yes--I agree. One must first plan not to lose too much on each trade

MACD does follow price, I look for patterns that indicate weakness or strength. This one pre-drop is a very strong pattern indeed. Have a nice Easter!

Excellent--I can see exactly where the entry was and how weak the price action was at the time. Really like your analysis here.

 

[Buy1Sell2]

Do you know why B1 is spot on? All he is saying follow the market's bigger turns and do not overcommit, that way you don't need to be a constant slave to ever changing market conditions and can treat trading without a PhD in finance or econometrics.

Believe you are giving me too much credit. This is what I am saying though. --Principles apply in any time frames as well.

 

[SunTrader]

In my case high profits were connected with high win rate. But I understand that this is not the case for everybody or every system.
So from my personal experience it was right, but in general it is not always right.

Ohh impressive. So how much longer till own you ........ everything?

 

[romik]

Here is another forecast, GBPUSD to advance to around 1.6 as preliminary target. B1 are you getting on GBP train? This is weekly chart and a book perfect pattern within MACD's histogram.

 

[romik]

One more, Gold Monthly, my favourite pattern within MACD's histogram, stop below monthly lows and preliminary target of $1,500.

Interesting timing, stock markets are on the brink of decline, gold looks ready for retracement.

Of course, these are forecasts, price hasn't confirmed them yet, that's where your TL break confirms sentiment.