MACD system

[trendie]

was perusing FF, and saw the Force 5mins system. Thought it rather good.

http://www.forexfactory.com/showthread.php?t=120606

However, typlically, for me, the first thing for me was to change it!!

As an observation, buys and sells when MACD(12,26,1) cross over the 100 line seems to be good entries/exits.

I dont like MACD, but perhaps a useful base for newbies.
Sorry if it offends the no-indies and price-action crowd.

 

[pogle]

was perusing FF, and saw the Force 5mins system. Thought it rather good.

The Force 5min system

However, typlically, for me, the first thing for me was to change it!!

As an observation, buys and sells when MACD(12,26,1) cross over the 100 line seems to be good entries/exits.

I dont like MACD, but perhaps a useful base for newbies.
Sorry if it offends the no-indies and price-action crowd.

I think you have a type in there, I think you mean "cross over the 0 (zero) line".

 

[trendie]

I think you have a type in there, I think you mean "cross over the 0 (zero) line".

nope. its "0.001" and "-0.001" (essentially 10 pips), rather than zero. effectively, when it drops below/above the two outer lines.
It seems to act as a sort of early-warning; this is eyeballing it, no major-testing has been done.
Using it like that, the Stochs almost become obsolete, and the MAs act as confirmers.
(this reduces number of indicators).

There are probably more losing trades, as its a hair-trigger, but the risk taken is reduced, so I wonder if the greater reward on the trade risk is worth it.
Of course, when it goes out of synch, its rubbish. And, sharp, choppy moves results in more losers.
And its best to get price-action confirmers like congesting or double-tops/bottoms, etc, as back-up signals.

Just musing in-between trades. Dont take this too seriously. I just liked the pretty colours.

 

[Cooldent]

Nice thread, Many thanks for all of you

 

[Gumping]

Hi Trendie

I did a decent eyeballing of that system and actually played with it on demo for a few hours. Seemed like my account equity was pretty safe with it, but basically gluing oneself to an M5 chart and taking every signal in the hope that one of them will be THE signal that produces the whole day's profit was not my idea of fun. I ended up with long break-even runs of trades making +/- 5 pips with the odd 20+ pip trade coming in. If you view that thread to the end, you realise the guy is using the system as a primer to a more price-action based system later on in the thread. That also changed my thinking about it somewhat.