hmm, let's see what we can do with just 2 indicators

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Old Aug 22, 2009, 7:00pm   #25
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Default Re: hmm, let's see what we can do with just 2 indicators

Decompose the MACD and the Bollies, find out what the price has to do for them to do what they do. It’s really important you understand what the indicators mean (how they are constructed) so you can get back (as others have mentioned) to the price action itself.

Your suggested strategy in post #1 will always have you looking at the bollies hitting one band or the other and then you waiting for the MACD to cross the zero line, by which time...

Bollie band will pretty much always lead the MACD action using the pattern you’re suggesting. If you’re going to continue to play this one (which I don’t recommend), look at what happens when the MACD histo separates from the signal line (there’s a gap between them) shortly after the Bollie band has been out-deviated (LOL) by the price action.

You’ll need to add some form of confirming price action such as waiting for the bar after the price extension through the bollie band (no body contact with the band, just the high/low spike ) to be complete totally within the bands and for it to be a bull bar/bear bar in support of your intended direction – that will be your signal bar.

But, get this out of your system (?) and get back to real basics - just the price. All of what I've just said is visible purely in the price itself.
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Thanks! The post above is recommended by: Beachtrader
Old Aug 22, 2009, 7:16pm   #26
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Default Re: hmm, let's see what we can do with just 2 indicators

TAjammy started this thread yeh naked trading is good and i have done well (on demo ) with it , very well.

It's just i've never been great with using any indicators. so i tried this, no opportunities yet.
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Old Aug 23, 2009, 1:48am   #27
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Default Re: hmm, let's see what we can do with just 2 indicators

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Originally Posted by TAjammy View Post
yeh naked trading is good and i have done well (on demo ) with it , very well.

It's just i've never been great with using any indicators. so i tried this, no opportunities yet.
Since you are determined, I'll try to be helpful.

About the Bollingers. When you have decided what average to use, it could be helpful to put that average on the chart, too, because if the average is flattish or going down when overbought it might indicate a sell signal. If the average is going up, that could mean that a trend is underway-- not starting--- the trend might have started at any spot between the average and the lower BB line several bars previously. Remember, if the average is too short, you'll be annoyed by swinging, difficult to read, lines.

If the price is trending, it might be helpful to run a trendline up, underneath the bars because a trend break when the price is overbought can, quite often be significant, with a fall down to the average (which is also countertrend, I'm afraid) but it could be a useful point to take profits, at least.

Last edited by Splitlink; Aug 23, 2009 at 1:59am.
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Old Aug 23, 2009, 6:44pm   #28
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Default Re: hmm, let's see what we can do with just 2 indicators

TAjammy started this thread well noticed quite a large bearish divergence on the EURUSD dailies.
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Last edited by TAjammy; Aug 23, 2009 at 6:50pm.
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Old Aug 23, 2009, 7:16pm   #29
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Default Re: hmm, let's see what we can do with just 2 indicators

TAjammy started this thread hmm looks like this gap is filling well on the M5, will take profits on the lower band, or the top of the candle on the bottom of the gap

:edit yeh played out nicely, took profits as the gap was filled
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Old Aug 23, 2009, 8:45pm   #30
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Default Re: hmm, let's see what we can do with just 2 indicators

Why have you blanked out lots of stuff on your screen but left your account # up, what's the point?
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Old Aug 24, 2009, 9:20am   #31
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Default Re: hmm, let's see what we can do with just 2 indicators

TAjammy started this thread lol cos you can see what i'm searching on my interwebs
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Old Aug 24, 2009, 10:33am   #32
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Default Re: hmm, let's see what we can do with just 2 indicators

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lol cos you can see what i'm searching on my interwebs
And the bottom right corner? You don't want us to know the time? I'm sure we can imagine what 15yr old kids look at on the net.
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