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Old 08-03-2008, 02:47 AM
Deevz Deevz is offline
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Join Date: Jul 2008
Posts: 27
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This is what I've read:

Quote:
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.

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.
I don't see the answer to my question there. Perhaps you don't get exactly what I'm trying to say?

Last edited by Deevz; 08-03-2008 at 02:56 AM.