tradesmart
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tradesmart
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Mom - possibly a syndrome induced when it's trading in a tight range as now - perhaps we can relate it to RSI which has moved from bottom to top just now, with only a 20 point movement in the price - weak!
frugi
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Mombasa,
In what is probably an oversimplistic and amateur way I've attempted to incorporate a portion of China's Tick/ES divergence into my own trading. I certainly don't understand it with their level of depth and acuity but then again I always like to keep tings simple.
On a 2 min chart first look for Tick's MACD (I use 10,20,2) to diverge from Tick. i.e Tick makes LL, MACD makes HL or Tick makes HH, MACD makes LH
This is a sort of heads up warning signal as far as I can see and needs at least half an hour to be worthy of our attention.
Then, look for Tick to diverge from ES, i.e. ES makes LL, Tick makes HL or ES makes HH, Tick makes LH.
This divergence also needs at least half an hour to give a decent signal.
If you get these two along with a ChartMan 3pk RSI divergence the signal is often a goodun.
There's an example this afternoon actually between about 2.45 and 4.30. First a Tick/Tick MACD div then an ES/Tick div leading to a buy signal, reinforced because we were sat on a pivot (yellow line). Mind you it's now looking like a bear flag and I'll probably be stopped out for breakeven.
In what is probably an oversimplistic and amateur way I've attempted to incorporate a portion of China's Tick/ES divergence into my own trading. I certainly don't understand it with their level of depth and acuity but then again I always like to keep tings simple.
On a 2 min chart first look for Tick's MACD (I use 10,20,2) to diverge from Tick. i.e Tick makes LL, MACD makes HL or Tick makes HH, MACD makes LH
This is a sort of heads up warning signal as far as I can see and needs at least half an hour to be worthy of our attention.
Then, look for Tick to diverge from ES, i.e. ES makes LL, Tick makes HL or ES makes HH, Tick makes LH.
This divergence also needs at least half an hour to give a decent signal.
If you get these two along with a ChartMan 3pk RSI divergence the signal is often a goodun.
There's an example this afternoon actually between about 2.45 and 4.30. First a Tick/Tick MACD div then an ES/Tick div leading to a buy signal, reinforced because we were sat on a pivot (yellow line). Mind you it's now looking like a bear flag and I'll probably be stopped out for breakeven.
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Frugi - thx.
I find CM's RSI very good, but always worth keeping in touch with other stuff - now that I'm addicted to trading and know a little bit more abt it then I did at the beginning of the year - all thanks to this board and particularly CM.
It seems that China has developed brill trading system based on TRIN & PREM - but guess one has to learn to walk before running
I find CM's RSI very good, but always worth keeping in touch with other stuff - now that I'm addicted to trading and know a little bit more abt it then I did at the beginning of the year - all thanks to this board and particularly CM.
It seems that China has developed brill trading system based on TRIN & PREM - but guess one has to learn to walk before running
Hi Jaykay,
On a daily basis or intraday very little, this index could move another 280 pts North & still have the divergence.
If you look at the weekly chart I have posted- the price has always followed the MACD, but since June where the MACD peaked, the price has trended upwards, mainly on very light volume. There has become a divergence between the 2- it tells me that a correction is overdue & to be careful being long.
You then have to move down to the daily chart & see what's happening, then an hourly chart, then the mins charts, as I said in the first paragraph the index could still move even with the divergence- it's just something to be aware of.
Cheers
On a daily basis or intraday very little, this index could move another 280 pts North & still have the divergence.
If you look at the weekly chart I have posted- the price has always followed the MACD, but since June where the MACD peaked, the price has trended upwards, mainly on very light volume. There has become a divergence between the 2- it tells me that a correction is overdue & to be careful being long.
You then have to move down to the daily chart & see what's happening, then an hourly chart, then the mins charts, as I said in the first paragraph the index could still move even with the divergence- it's just something to be aware of.
Cheers
Lockstock
Just a thought but your chart appears to display a MACD Histogram. Have you compared the MACD in line formation (fast and slow). I find that using divergence on this is a better gauge because it does not provide many signals in a year but generally when you do see divergence from this it tends to be a good signal. I am not suggesting the MACD H should be ignored far from it, just that this reacts quicker and therefore gives far more signals. The MACD on its own used for divergence acts as a good filter for the MACD H. At least that is what I have experienced however no one signal will work all of the time but it does work more than it does not.
As usual good luck
Just a thought but your chart appears to display a MACD Histogram. Have you compared the MACD in line formation (fast and slow). I find that using divergence on this is a better gauge because it does not provide many signals in a year but generally when you do see divergence from this it tends to be a good signal. I am not suggesting the MACD H should be ignored far from it, just that this reacts quicker and therefore gives far more signals. The MACD on its own used for divergence acts as a good filter for the MACD H. At least that is what I have experienced however no one signal will work all of the time but it does work more than it does not.
As usual good luck
Hi Kev,
Long time no hear!!!
Tried the other site- couldn't access it
Did notice a post from you re: Piper & Elder of the two books which did you find the most useful.
I'll have a jig about with the settings re: MACD see if it displays anything different.
Did you get into NIS at 18p??? I think it's now at c.54p A nice 3 bagger. I wonder what happened to Kirky boy!!!?!!
Jaykay - No problem- we all are learning- just at differnt levels.
Cheers
Long time no hear!!!
Tried the other site- couldn't access it
Did notice a post from you re: Piper & Elder of the two books which did you find the most useful.
I'll have a jig about with the settings re: MACD see if it displays anything different.
Did you get into NIS at 18p??? I think it's now at c.54p A nice 3 bagger. I wonder what happened to Kirky boy!!!?!!
Jaykay - No problem- we all are learning- just at differnt levels.
Cheers
I would say that Elder is the better read. They are both good at dealing with a complete plan. Piper goes into a bit more detail in terms of price movement dealing with price acceptance and minus development and stops. Elder offers up some simple trading strategies, although not necessarily his he just gives an explanation. His process of on-going evaluation and putting it all together is good. Obviously the 2 books offer a little of what the other does not and Piper's is no longer in print so you can only get it either from a library enquiry or second hand or e-book. Piper repeats himself so sometimes it appears a disjointed read but when the relevant section are taken in isolation it has some very good points. This is a long winded way of introducing them and selecting Elder.
As for NIS I watch it but have only daytraded and exclusively on the FTSE. Consider longer term positions in the future.
Kevin
As for NIS I watch it but have only daytraded and exclusively on the FTSE. Consider longer term positions in the future.
Kevin
tradesmart
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SFX - I got a short in at the double-top at 10k and still holding - I think there might be quite an appreciable pull back from such a big 'whole' number before the buying begins again in earnest....
maybe there will be a short-term downtrend now, but have a trailing stop in place just in case!
Good Luck
maybe there will be a short-term downtrend now, but have a trailing stop in place just in case!
Good Luck
