My trading strat.......

[ceydababy]

50 Sma

Interesting concept. I will look at it. Where does the 50 SMA come in?

MG

In short personally (not saying this is the textbook way to use 50sma) If the price is under the 50 sma the bears are in control over the 50 sma the bulls are in control. If market is tight I normally exit on the 50sma...

I am going to post an excel sheet of trades made today using the system. These ARE LIVE calls. I trade with Brutus Dog, Ziff, Firewalker, Foalish, Tricks, Trader Dante and sometimes Dinos, so they can verify that the calls are live. I will stress that some of the trades may be demo but i will double stress these aren't going to be harry hindsight trades they will be LIVE TRADING CALLS.

Thanks

 

[cu2]

It always is the trickier part

Have you thought about raising your stop when the "fixed point target" has been reached. Or taking some profits at that level and consequently moving your stop to BE for the remaining part of your position?

Why not wait at that "significant point of Resistance/Support" to see what price does first? However on the 1-min there'll most likely be a counter-reaction, no matter what... always some scalpers around. Or you could wait and see what price does but while you wait, move up your stop so if price decides to break S/R you'd still be in for the major move.

Just some comments..

That is how I do it scaling out....
I have found working with 1 minute charts (jumpy as)
In a non trending market like we have of late difficult!
I enter with 2 positions the 1st TP is at the S/R or low vol or MA's unless fast moving volume is in favor.
Place stop for 2nd pos. to + 1 which will quite often get kicked out. But it can also be very rewarding.
Anyway by doing that you have the best of both worlds and my win to loss ratio is about 85% most of the time this way.

 

[PKFFW]

Nice simple system.

Thanks for posting.

But Macd or a few other indicators do not have to be lagging indicators/

Hi options,

Care to elaborate on how they can be non-lagging? Or point me in the direction to finding this info?

And ceydababy, thanks for posting. Looks like a simple and easy to understand system.

Cheers,
PKFFW

 

[black bear]

macd & histo or stock on wee time frame

Hi options,

Care to elaborate on how they can be non-lagging? Or point me in the direction to finding this info?

And ceydababy, thanks for posting. Looks like a simple and easy to understand system.

Cheers,
PKFFW

Hi

Going out to see lad at footy so no time to re-post


macd trend 1hr slow line

pull backs in smaller one

ie: 5 or 3 min charts with histo for assistance perhaps


Andy AKA

 

[cu2]

Sar & MACD in sync?

When you say that the SAR & MACD MUST be in sync.

Do you mean that they both must change at the same time. Which would also mean that if the SAR was already long 2, 1 minute bars ago and the MACD changed to a long signal on the 3rd min bar - that would not be in sync. Is that correct?

 

[PKFFW]

Hi

Going out to see lad at footy so no time to re-post


macd trend 1hr slow line

pull backs in smaller one

ie: 5 or 3 min charts with histo for assistance perhaps


Andy AKA

Once more for the dummy at the back of the class please??

Cheers,
PKFFW

 

[black bear]

Macd charts 2 time frames (1 hr & 5 mins)

Once more for the dummy at the back of the class please??

Cheers,
PKFFW

Some charts to help the boys and girls at the back of the class :lol

IT IS NOT A MAGIC BULLET

There is so much written regards macd and other indicators, read it all if you think they are for you.

NOTE: I do not use method, but at the end of the day its just a view of the market and very pretty to lifts the spirit watching the Histo grow and grow if your the right side

I did use method and works fine when I started, infact recovered a 50% drawdown with this view of the market, just don"t need them any more.

It is IMO very important you maintain same view of the market and get used to watching price action in chosen view and build on it a bit at a time if just starting out.

DEMO TRADE IT FOR A MONTH and make any mods to entry and exit to suit you.

HAVE FUN :cheesy:

INCLUDING THE BAD TRADES

Ideas for building on it (see rest of T2W threads) ~ trade off S&R levels, day high and low, week high and low, pivot points, fib levels.

Charts ftse 14th nov not 19th as charts say, not great but you will get the general idea, put 50 sma on because mentioned earlier, you can use any really it should just be the same so you get used to it.

The lines are (could not be bothered to remove them for posting, getting lazy )

Red = nothing to do with you last swing low days
purple = TODAYS open hour range
Black = Last weeks high and low

Andy AKA

 

[etherington]

ceydababy - in your original post describing your system and referring to entry criteria what is meant by the 'second histogram'? I am using Updata and have a macd histogram and a SAR histogram plus the 50 simple moving average as a line on the chart.

Ron

 

[ceydababy]

ceydababy - in your original post describing your system and referring to entry criteria what is meant by the 'second histogram'? I am using Updata and have a macd histogram and a SAR histogram plus the 50 simple moving average as a line on the chart.

Ron

Hi Ron,

I mean the 2nd Histogram Bar...So it will switch from green to red (this puts you on alert for the short) when the second histogram comes in (provided PARAB is RED) this confirms the short signal...Opposite applies for long signals obviously.

Thanks

 

[PKFFW]

Devilbis,

Thanks for the clearer explanation. I figured you were talking about looking at multiple timeframes. Just couldn't work out exactly what I was trying to see. The charts make it clearer.

Cheers,
PKFFW

 

[PKFFW]

ceydababy,

When you say "when the MACD histogram goes from green to red" do you mean when the bar changes colour or when it crosses the zero line? Do the bars change colour only when crossing zero line?

I'm using MT4 and no MACD code I have downloaded yet actually changes the histogram bar colours at all. I do remember on my old platform they changed colour but can't remember if that is only when crossing zero line or not.

Cheers,
PKFFW

 

[etherington]

ceydababy - thanks for the explanation

 

[ceydababy]

When you say that the SAR & MACD MUST be in sync.

Do you mean that they both must change at the same time. Which would also mean that if the SAR was already long 2, 1 minute bars ago and the MACD changed to a long signal on the 3rd min bar - that would not be in sync. Is that correct?

No what I mean by out of Sync is that the system signals you long at the top of the market and short at the bottom.....This can happen in a tight choppy market....Don't trade during these periods of time....

 

[ceydababy]

ceydababy,

When you say "when the MACD histogram goes from green to red" do you mean when the bar changes colour or when it crosses the zero line? Do the bars change colour only when crossing zero line?

I'm using MT4 and no MACD code I have downloaded yet actually changes the histogram bar colours at all. I do remember on my old platform they changed colour but can't remember if that is only when crossing zero line or not.

Cheers,
PKFFW

I don't look at the signal line crossing the 0. I only look at the Histogram...This represents the fast line crossing the signal line, the larger the histo bars the further the gap between fast line and signal line (I am no technician...so if this is wrong...someone else please correct it !!)

So the colours on the histogram represent only the fast line crossing the signal line, they do not tell you weather this happened above or below the 0 line.

There is another system out there, I trade with a guy who uses it, so have seen it traded "live". This is an macd based system that looks for you to trade (long) on positive histograms above the 0 line and (short) on negative (red) histograms under the 0 line. Has a revamped set of MACD numbers and is not for the faint hearted !! Linda Bradford Raschke uses a similar setup I believe...called the slingshot (maybe)

 

[PKFFW]

I don't look at the signal line crossing the 0. I only look at the Histogram...This represents the fast line crossing the signal line, the larger the histo bars the further the gap between fast line and signal line (I am no technician...so if this is wrong...someone else please correct it !!)

So the colours on the histogram represent only the fast line crossing the signal line, they do not tell you weather this happened above or below the 0 line.

There is another system out there, I trade with a guy who uses it, so have seen it traded "live". This is an macd based system that looks for you to trade (long) on positive histograms above the 0 line and (short) on negative (red) histograms under the 0 line. Has a revamped set of MACD numbers and is not for the faint hearted !! Linda Bradford Raschke uses a similar setup I believe...called the slingshot (maybe)

Hi ceyababy,

I'm not sure I explained myself clearly. On some MACD's the bars of the histogram will do this......

Bars can be above or below the 0(centre) line. As they get longer in relation to the 0 line they will remain the same colour. eg if the bars are above the middle line and growing longer they will remain green. As soon as a bar forms that is shorter than the preceding one, it will change colour, usually to red. If the bars are under the middle line and getting longer they will remain red but as soon as one forms that is shorter than the preceding bar, it will change to green.

On other MACD's I have notice the bars only change colour when they pass from above to below (or vice versa) the middle line.

So I'm wondering how your MACD is set up and how exactly you take the signals.

I only have MT4 and no decent MACD for it so can't come up with a chart to give as an example to what I mean. Any chance of a chart shot from you as an example?

Cheers,
PKFFW

 

[cu2]

how about a few eg photos

Its easy to take a photo of screen, just hit prt sc button, then patse it in paint. Then you can draw arrows add comments etc.

I would also appriecate a few photo eg.'s

Thanks

 

[cu2]

Now here you go easy done.

I would also like to know what the use of the 50 SMA is, just trend direction? Or would you use it as R/S.
Or wouldnt go long if under it?

 

[ceydababy]

Now here you go easy done.

I would also like to know what the use of the 50 SMA is, just trend direction? Or would you use it as R/S.
Or wouldnt go long if under it?

Screenshot is great. Didn't know you could do that with CS ! Yes this is correct. I would however point out that I generally don't trade the FTSE out of hours. I look to trade between 8am and 4:30pm. There were two moves signalled that gave no profit there, losses would have been very small however. I generally find outside of the hours quoted above the FTSE is not as tradeable.

I am now looking at DAX as well as AUS/USD for trades outside of the FTSE hours. Both of these markets seem to perform well under testing.

I often wait for the second and not the third histogram for confirmation of a move. I find that sometimes waiting for the 3rd histo can mean that you are getting pushed especially on some of the smaller moves that the 1 minute can pick up.

A chap I trade with whom is also well known on these boards has a few extra confirmations that he is working on that will enable an entry on the first Histo rather than waiting for a second. Once I have these confirmed I will get his permission to post here, or see if he will post the revisions himself. From my understanding of what he is saying you will obviously only go on the first histogram should the other confirming signals be in line, otherwise it's business as usual waiting for the second,it may also filter some of the weaker moves.

No system is perfect, but the key here is the simplicity and the fact that losses are small should the signals not work out. If you move out from the 1 minute time frame obviously signals are fewer and some might argue stronger. However, if they are weak signals losses will be larger.

For my personality I'd rather be in and out, knowing losses will be small if things go wrong. Horses fror courses I guess.

 

[ceydababy]

Hi ceyababy,

I'm not sure I explained myself clearly. On some MACD's the bars of the histogram will do this......

Bars can be above or below the 0(centre) line. As they get longer in relation to the 0 line they will remain the same colour. eg if the bars are above the middle line and growing longer they will remain green. As soon as a bar forms that is shorter than the preceding one, it will change colour, usually to red. If the bars are under the middle line and getting longer they will remain red but as soon as one forms that is shorter than the preceding bar, it will change to green.

On other MACD's I have notice the bars only change colour when they pass from above to below (or vice versa) the middle line.

So I'm wondering how your MACD is set up and how exactly you take the signals.

I only have MT4 and no decent MACD for it so can't come up with a chart to give as an example to what I mean. Any chance of a chart shot from you as an example?

Cheers,
PKFFW

CU2 has posted an excellent chart with settings and annotations....saves me doing it !! Excellent job he has done to. The only difference is that I am not trading outside of FTSE Hours and am taking a signal on the second histo. Hope the chart posted clears up any confusion over MACD setup. This chart is how I am setup to trade.

 

[ceydababy]

Now here you go easy done.

I would also like to know what the use of the 50 SMA is, just trend direction? Or would you use it as R/S.
Or wouldnt go long if under it?

I look at the 50 SMA for S&R. If I am signalled long on the 50sma I will often wait for that to break before going long and visa versa for the short.