Now to explain how to use the 5 minute Keltner chart to get the best long entries.
Again we set up a 5 minute chart with the Bollinger bands and the Keltner bands with period 4, factor 1.
But the Di Napoli MACD, as it stands, will not work.
In its normal state, we use it for short entries.
We need to set up the Di Napoli MACD for long entries.
This is done by turning the MACD upside down.
How do we do this?
First, by finding what the values of the Di Napoli MACD are.
They are :
long moving average = 17.5185 (17.52)
short moving average = 8.3897 (8.39)
signal = 9.0503 (9.05) - not needed.. Make this one invisible if you can.
To turn this MACD upside down we invert the values, as follows.
long moving average = 8.3897 (8.39)
short moving average = 17.5185 (17.52)
signal - not needed
By doing this, we get an inverted MACD.
See next post.
Last edited by tymen1; 07-21-2008 at 09:52 AM.
|