choymi8828
47 posts
msg #85866
- Ignore choymi8828 |
1/9/2010 10:27:46 AM
gmg733,
You said:
I use MACD(2,3,1) and it is a very reliable signal. Enter at 0 or a cross and a sharp RSI(2) move up. Exit either at MACD divergence or a recross of the 0 line. If you aren't a screen watcher, simply see the close above the EMA(5).
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Are you using the DAILY MACD(2,3,1) or WEEKLY MACD(2,3,1) ? As the DAILY MACD(2,3,1) can be quite volatile !
Mike
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gmg733
788 posts
msg #85871
- Ignore gmg733 |
1/9/2010 12:59:24 PM
I use daily MACD with other indicators, right now mainly RSI(2), and Regression Channels.
Nothing that I do is unique or my brain child. Again, I just put pieces of the puzzle together from the works of TRO, Holygrail/M4M and others.
MACD is volitile if you look at it on a day by day basis. But if MACD makes a nice pull back, so is the stock btw, assuming you are in an uptrend and you're looking for a long position you can make some safe entries into the trade, i.e. when the MACD is at 0 or above.
Look at GOOG today. Dipped back to the MACD -4 level. This is a nice pullback for GOOG. RSI(2) was very low as well. How will GOOG perform? Hell if I know, but if the MACD 0 is crossed and the RSI shoots up above around 75 it puts odds in my favor. Sure it could swing trap on me. And if you want to be more safe about the trade, then buy after a close of the EMA(5).
I took a position in PNRA yesterday despite my reluctance to be putting on longs right now. But, weekly and daily support look good. Stock pulled back into its lower regression channel line. Stock is 'green'. Closed just at/above MACD 0 line. RSI(2) went from below 10 to above 70 in one day. I'm trying to put the odds in my favor, thats all. Will it bounce off the 0 line? Maybe. Will it swing trap? Maybe. Will it head lower? Maybe. But after a pull back and the RSI really really low, it is usually a safe trade.
Study what TRO and M4M/Holygrail say about RSI(2) and look at M4Ms recent dialog and study the MACD. I have been making money using TROs methods and plan on continue to do so. I simply modify the stat scans to meet my investing style which is a 'swing' or weekly style.
Again, I'm doing nothing special here. I simply took the time to read the aforementioned authors blogs and etc. In fact A LOT of time. If nothing else I started to see what they are seeing and how they think.
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johnpaulca
12,036 posts
msg #85875
- Ignore johnpaulca |
1/9/2010 2:52:44 PM
gmg733 , good entry on PNRA your analysis is excellent and you will do well in this market.....good job.
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gaurav
11 posts
msg #85876
- Ignore gaurav |
1/9/2010 3:05:59 PM
gmg,
Thanks for sharing the information. How do you plan for stop loss? I have read that a lot of people using the previous day's close as the stop loss and continue to modify it daily until the stop loss has triggered.
Specifically on PNRA but applies in general to your trading strategy, did you take a position in the stock at EOD or as soon as the MACD crossed over 0? If it was during the day, what do you use to get alerts? Are there any specific scans that you use to find trades?
Gaurav
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choymi8828
47 posts
msg #85881
- Ignore choymi8828 |
1/9/2010 6:39:58 PM
gmg733,
Thanks for everyone of the earlier reply.
When you are putting RSI-2, MACD2,3,1 and LR on the hourly or 2 hours charts in Think or Swim, what kind of time frame do you use ? Such as 1 days, 2days, 5 days, 10 days ??? This is due to the fact that different timeframe will have different tops or bottoms for the Linear Regression Channel.
I personally use 30 mins, 60 mins with macd(12,26,9), RSI-14 and LR100 with 5 days and 10 days in Think or Swim with good success rate as well.
BTW, do you know which filter is he using when he keeps on mentioning about his "X" profit indicator ?
Mike
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gaurav
11 posts
msg #85962
- Ignore gaurav |
1/11/2010 3:57:14 PM
Bringing this back to the top. Hopefully Greg replies back.
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