This is a picture of what you get when you invert the MACD >>>
By
tymen1 at 2008-07-21
The red MACD is the original Di Napoli MACD.
Note that you cannot put the inverted values into the Di Napoli MACD.
You have to open a new MACD to put the values into.
The green MACD is the result when you put the values into inversion.
By doing this we are now ready to set up a 5 minute chart to trade
long.
On the 5 minute "long" chart you have :
The Bollinger bands - standard values as before.
Keltner channel - period 4, factor 1 as before.
Inverted Di Napoli MACD - long period = 8.3897 and short period = 17.5185.
You can set both the MACD's on the same chart and expand/contract them as needed. (On the above chart, the candlestick chart is contracted or minimized - you can see the colour bar above the MACD's).
When it is time to enter a trade, we do exactly as before.
We draw or note the middle BB vector, then draw or note the
inverted Di Napoli MACD vector.
The resultant will give us the best possible
long entry price.
A note on resultants next post.