Three Macd Indicator Method

timtomlee · #1 27th August 2006, 02:04 AM

HI all,

I have developed this system by using 3 MACD indicators for swing trading.

"Three different MACD indicators"

1st. indicator - MACD (8,50,1)
2nd. indicator - MACD (50,200,1)
3rd. indicator - MACD (3,10,1)

If 1st. indicator is below "0" value, that means 8 day ema below 50 day ema,
bearish for intermediate term.

If 2nd. indicator is below "0" value, alongwith the 1st. indicator, bearish for long term.

Now, as 1st. indicator is rising above "0" value, but 2nd. indicator is below "0"
value, we must be cautious before entering the market. If both are rising above "0" values, we can go long.

Also, if both the indicators are above the "0" value for a long time, and the
2nd. indicator is trending more than the 1st. indicator (we can do this by visual inspection), then we can expect correction any time. Therefore,
be cautious in such scenario before going long.

If 3rd. indicator is below "0" value, that means the stock is oversold and when it crosses just above "0" value, we can go long.

But i advise to use 3rd. indicator alongwith other "oscillators" like RSI,
SLOW STOCH or WILL'SR%. This will give a better idea.
If it is used alongwith, say, SLOW STOCH, and if both confirm "oversold" level, then we are sure about our method.

I have attached three charts below. I am still finetuning it. Suggestions will
be appreciated. Credit also goes to VVONTERU for guiding me in this.

Regards,

Sonu M.

marcus · #2 27th August 2006, 02:37 PM

Rather unorthodox but very interesting.

nandlal_mk · #3 27th August 2006, 02:53 PM

hi tim,
I appriciate ur effort (even i dont like to use any MACD , as these r lagger and every indicator is Time Window Dependent) but all ur 3 charts r from same time periods of indian market where we have common fall and rise( april to august). Almost every tradeble scrip behave more or less in same manner with these major fall and pullbacks. So try ur study with different markets/scrip/time periods.

timtomlee · #4 27th August 2006, 03:19 PM

Quote:

Originally Posted by nandlal_mk

hi tim,
I appriciate ur effort (even i dont like to use any MACD , as these r lagger and every indicator is Time Window Dependent) but all ur 3 charts r from same time periods of indian market where we have common fall and rise( april to august). Almost every tradeble scrip behave more or less in same manner with these major fall and pullbacks. So try ur study with different markets/scrip/time periods.

Hi nandal,

The problem is not with the time-frame, the problem is with my software. I have Quotetracker, so it only gives data for the last 6 months. I have no other software right now. The research i did was on "icharts.in" and i cant' upload it as its more than 1mb in size. Before concluding this system, I have tried and tested in all market frames on icharts.in. For ur confirmation, u may
look at VVONTERU'S post in EQUITIES section, where i asked him to test it and he has given me his approval. The CORRECTION can be of major one or a
minor one. As i said earlier, due to data constraints, i was unable to upload it.

I have been benefited by this forum and so i thought i must share my system with all members. Neverthless, I still appreciate ur comments and would like u to test this system on all time frames and plz go thru VVONTERU'S post.

http://www.traderji.com/56478-post931.html

Regards,

Sonu M.

karthikmarar · #5 27th August 2006, 07:53 PM

sonu

Looks like you are not happy with my comments on the system. Please understand that the idea of the post was not to ridicule your system.
The comments were given so you could improve the system. We appraise a system based on our experience. I have deleted my post. Please do so in your post also.

Thanks

regards

Karthik

timtomlee · #6 27th August 2006, 08:37 PM

Quote:

Originally Posted by karthikmarar

sonu

Looks like you are not happy with my comments on the system. Please understand that the idea of the post was not to ridicule your system.
The comments were given so you could improve the system. We appraise a system based on our experience. I have deleted my post. Please do so in your post also.

Thanks

regards

Karthik

Karthik,

I am not unhappy, but rather appreciate ur comments. The point I was trying
to make was "EVERY SYSTEM HAS ITS OWN STRENGTH AND WEAKNESS".

I again stress, "This system works best for swing trade, with stocks
trending 2 month 0r 3 month high, confirming intermediate uptrend,
i.e., greater channel length."

As I said I am still finetuning it,and update it in future.
But so far, it has worked.

No offense taken brother. I have deleted my post at ur request.

As u rightly said, "We appraise a system based on our experience". Same here

Regards,

Sonu M.

GKHERA99 · #7 27th August 2006, 09:27 PM

Keep Up Good Work Ur Views On Educomp And Tata Chemical And Ipcl

GKHERA99 · #8 27th August 2006, 09:28 PM

New Ideas Are Always Met With Resistance But Show Must Go On

timtomlee · #9 27th August 2006, 10:29 PM

Quote:

Originally Posted by GKHERA99

Keep Up Good Work Ur Views On Educomp And Tata Chemical And Ipcl

Thanks GKHERA99 for ur encouragement. Views like urs keeps one going.

1. EDUCOMP - Has recently broken of its trading range. Highly volatile stock.
Currently, in its pullback mode. If u have not entered, wait
for few days for the pullback to complete. If u have already
entered, then hold on. Keep stop loss at 3*atr. Just be
watchful of such highly volatile stocks.

2.TATACHEM - Technically, i dont' like this stock. As pharma sector is
trending, compare this stock with the BSEHC. U will get my
idea.

3. IPCL - Though momentum is less, we can still go long. Support is
at 275 levels. Wait for a pullback.

Yet I advice u too cross check it with VVONTERU'S recommendations. This
will give u a more clear picture.

Once again, thanks for ur reply and encouragement.In comming days, I will post high momentum based stocks for swing trade.

Regards,

Sonu M.

aca_trader · #10 28th August 2006, 01:06 AM

Quote:

Originally Posted by GKHERA99

New Ideas Are Always Met With Resistance But Show Must Go On

I dont think his idea was being resisted? If a feedback is called resistence then the scope of further progress will be blocked forever. There is nothing to be touchy-feely about it but I guess it's become fashionable to have such feedbacks called seniors' hammering (Unfortunately only a few among us incl. Karthik and certainly not me are worthy to wear that tag on their sleeves).

Futher, IMHO, an idea in a development phase should not be posted on a public platform for advisory purposes till the time it's been finetuned and properly back-tested. Ofcourse, one can always ask for feedback and even if it's coming unsolicited from somebody who is wise, he has your and not his best interests in mind.

Hope, the message is accepted in its true sense.

Best Regards,
--Ashish

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