Hi friends
To succeed in trading,you need to Look in a unique & distinct perspective than the crowd.
In the markets,if you look at same perspective as the crowds, you are definitely wrong.This is so becoz the smart tradrs make money by trapping the crowd or herd.
Many people use MACD but leave it after a while as they find macd doesnt work as anticipated.
You can take a new route as to how you can use macd-signal crossovers
for a better powerful entry.
The concept comes from Eric Muathe as explained in his youtube video.
http://www.youtube.com/watch?v=H8OEHFpe2zE
What I ask you is
try & see if it works for you.
please post the experience you observe.
a cross over of macd below signal below zero line is better for sell signals.
a cross over of macd above signal above zero line is better for buy signals.
second and an unusual thing
suppose you have 3 crossovers and you join these points with a line then a new crossover that occurs below this line presents a better long entry.
suppose you have 3 crossovers above zero line and you draw a trendline joining these crossover points and later a new crossover occurs above the trendline you drew,then the new crossover presents good short entry.
==================================================================================================
THUMB RULE irrespective of timeframe
crosover below zeroline are not good for going long in general but if these occur after a trendbreak,they are perfect buy signals.
crossover above zeroline are not good for going short in general but if these occur above the trendline,they are good short sell signals.
An macd crossover that comes after a trendbreak to upside gives better short entry above zeroline.
An macd crossover that comes below the trendbreak gives better long entry-below zeroline.
=========================================
Thanks to Eric Muathe for the hint.
Warning
To apply this strategy you need observation,practice. you cant just use it out of the blue just like that.
we are talking of crossovers that are more or less in a zone,not wide apart when you draw the trendline.
understand first then try it.can you make a 100 test checks? If not stay away.
==============================================
did you observe these?what settings did Eric use for macd? he used macd(5,8,3) or macd(13,21,8)-his tf is 60min.tf doesnt matter much.
happy trading
ford
To succeed in trading,you need to Look in a unique & distinct perspective than the crowd.
In the markets,if you look at same perspective as the crowds, you are definitely wrong.This is so becoz the smart tradrs make money by trapping the crowd or herd.
Many people use MACD but leave it after a while as they find macd doesnt work as anticipated.
You can take a new route as to how you can use macd-signal crossovers
for a better powerful entry.
The concept comes from Eric Muathe as explained in his youtube video.
http://www.youtube.com/watch?v=H8OEHFpe2zE
What I ask you is
try & see if it works for you.
please post the experience you observe.
a cross over of macd below signal below zero line is better for sell signals.
a cross over of macd above signal above zero line is better for buy signals.
second and an unusual thing
suppose you have 3 crossovers and you join these points with a line then a new crossover that occurs below this line presents a better long entry.
suppose you have 3 crossovers above zero line and you draw a trendline joining these crossover points and later a new crossover occurs above the trendline you drew,then the new crossover presents good short entry.
==================================================================================================
THUMB RULE irrespective of timeframe
crosover below zeroline are not good for going long in general but if these occur after a trendbreak,they are perfect buy signals.
crossover above zeroline are not good for going short in general but if these occur above the trendline,they are good short sell signals.
An macd crossover that comes after a trendbreak to upside gives better short entry above zeroline.
An macd crossover that comes below the trendbreak gives better long entry-below zeroline.
=========================================
Thanks to Eric Muathe for the hint.
Warning
To apply this strategy you need observation,practice. you cant just use it out of the blue just like that.
we are talking of crossovers that are more or less in a zone,not wide apart when you draw the trendline.
understand first then try it.can you make a 100 test checks? If not stay away.
==============================================
did you observe these?what settings did Eric use for macd? he used macd(5,8,3) or macd(13,21,8)-his tf is 60min.tf doesnt matter much.
happy trading
ford
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