Topic: A MACD Analysis Thread - page 2. (Read 3159 times)
What do people think about using the MACD histogram to front run MACD crosses? For example when the histogram bars stop rising upwards and the most recent bar is lower than the last bar (in an uptrend). Any good indicator to confirm the "rate reversal" you would see in the MACD histogram?
IMO, witchcraft around only one oscillator (macd) doesnt make sense. MACD ZL cross/X must be confirmed along with others TI/trends/MAs/EWs/etc.
i will make threads about them soon™ 
Good thread to remind others basics of TA.
IMO, witchcraft around only one oscillator (macd) doesnt make sense. MACD ZL cross/X must be confirmed along with others TI/trends/MAs/EWs/etc.
Only complex look on current situation gives best prediction.
IMO, witchcraft around only one oscillator (macd) doesnt make sense. MACD ZL cross/X must be confirmed along with others TI/trends/MAs/EWs/etc.
Only complex look on current situation gives best prediction.
aye mang at least you spelled grammar right 
yep that's a quite achievement since my English is bad Yet another hammer
http://yfrog.com/nxmikfp
if anyone wants the 3 macd chart posted above http://www.putlocker.com/file/3E5B0C1F82E17B64
aye mang at least you spelled grammar right
before using macd one needs to understand why the need for macd ? because trading using moving average sux sometimes
so the main macd line ( the fast one ) is a the difference between 2 MA 12 periods and 26 periods by default on SC since this are the post used numbers
so we got a line that is the diff of 2 MA and since that's not twisted enough there is another MA based on this line and you get "the slow" macd line by default is 9 periods
also there is the histogram that show the gap between the 2 lines and traders who like to take risk use them to do front running since the macd can lag (so many damn MA) so most of the time is considered that 3 histogram lines show a trend and above 5 give a confirmation for said trend
also there is the ZL that give major support and major resistance nothing more
Convergence cases
is when the price go up for and macd go up
is when price go down and macd go down
divergence cases
is when price go up and macd go down
is when price go down and macd go up
weekly chart
there is only one problem the X(cross) was above the ZL that means any rally will have short live, but like always is a probability and there can be exceptions
http://twitter.yfrog.com/h3xydzp
a perfect example for a exception was the gold ( use google and check for fundamentals)
http://twitter.yfrog.com/g0ekmp
1 day
the price goes up, it take off a trend line, histogram goes under ZL, macd X above the ZL and this is a bearish cross since the fast macd goes blow the slow macd
http://twitter.yfrog.com/esd6hvp
1h
chart is a perfect example of ZL hammer when macd was about to go bullish above the ZL BAAAAAAMM!!!! hammer
http://twitter.yfrog.com/h62gyep
how to avoid data noise ?
SC by default use last price (the close price) so using a average of OHLC can take off some data noise but also can delay a signal :/
other way to cut the data noise made by close ?
is using volume, here is a chart suing 10k volume per bar
http://twitter.yfrog.com/obrbcqp
maybe i will fix typos and grammar later
so the main macd line ( the fast one ) is a the difference between 2 MA 12 periods and 26 periods by default on SC since this are the post used numbers
so we got a line that is the diff of 2 MA and since that's not twisted enough there is another MA based on this line and you get "the slow" macd line by default is 9 periods
also there is the histogram that show the gap between the 2 lines and traders who like to take risk use them to do front running since the macd can lag (so many damn MA) so most of the time is considered that 3 histogram lines show a trend and above 5 give a confirmation for said trend
also there is the ZL that give major support and major resistance nothing more
Convergence cases
is when the price go up for and macd go up
is when price go down and macd go down
divergence cases
is when price go up and macd go down
is when price go down and macd go up
weekly chart
there is only one problem the X(cross) was above the ZL that means any rally will have short live, but like always is a probability and there can be exceptions
http://twitter.yfrog.com/h3xydzp
a perfect example for a exception was the gold ( use google and check for fundamentals)
http://twitter.yfrog.com/g0ekmp
1 day
the price goes up, it take off a trend line, histogram goes under ZL, macd X above the ZL and this is a bearish cross since the fast macd goes blow the slow macd
http://twitter.yfrog.com/esd6hvp
1h
chart is a perfect example of ZL hammer when macd was about to go bullish above the ZL BAAAAAAMM!!!! hammer
http://twitter.yfrog.com/h62gyep
how to avoid data noise ?
SC by default use last price (the close price) so using a average of OHLC can take off some data noise but also can delay a signal :/
other way to cut the data noise made by close ?
is using volume, here is a chart suing 10k volume per bar
http://twitter.yfrog.com/obrbcqp
maybe i will fix typos and grammar later
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