Article: Forex: Keep An Eye On Momentum

Here’s another ‘nugget’ (and one of the best articles I personally have ever read on MACD and momentum):

Forex: Keep An Eye On Momentum

Regards,

Dale.

INteresting article!

Thanks for sharing! :smiley:

Very cool!

Gave me a whole new understanding of something I previously disregarded.

Thanks!!!:smiley:

Ya, I can tell this is gonna be a good read, just need to fall asleep now so i can understand it tomorrow lol

Hello,

Gave me a whole new understanding of something I previously disregarded.

I have to agree with you there Master_Tang.

But I must say: this Boris Schlossberg and Kathy Lien ‘pair’ seem to ‘know their oats’ actually (not that I trade there stuff much but have on occasion with good success).

Here is another by them:

‘Channel Breakouts With The CCI’.

Channel Breakouts With The CCI

But you’ll notice: their stuff works WHY??? RISK MANAGEMENT (new traders take note)!!!

And another one (I know I’ve posted this before):

‘Ride The RSI Rollercoaster’.

Ride The RSI Rollercoaster

And yet another one (although WATCH your RISK MANAGEMENT with this one i.e. your stops can be WAY too big for your account with this one):

‘Forex: The Memory Of Price Strategy’.

Forex: The Memory Of Price Strategy

These are real simple, almost like ‘paint by number’, strategies that work well I reckon. They’re good for a few points (OK: PIPS)!!! LOL!!!

It’d odd actually: all of these strategies, amongst others, are contained in an e-book called ‘High Probability Trading Setups for the Currency Market’ but for some or the other reason all of the strategies in the e-book have been detailed for free on Investopedia???

Regards,

Dale.

Hey,

I don’t know if anybody is interested in this but I find that I’ve been wondering about this very new and interesting ‘take’ on MACD (above).

So: I’ve attached a chart. It’s the 1 hour chart of the US Dollar Index (September) (I VERY rarely EVER trade on the 1 hour chart but for this experiment and a TINY little position I don’t see why not).

My LOWEST MACD reading thus far is -0.024. According to good 'ol Boris (above): IF MACD crosses over the zero line and then EXCEEDS 0.024: that should be a long (momentum) signal right??? Let’s give it a bash ‘just for fun’.

(I’ve removed the MACD EMA lines because we don’t need them do we)???

By the way: I’m doing this ‘blind’. At this point: I’ve no idea where I’ll put my stop (although in keeping with the way I do everything else it’ll in all probability be placed at the previous swing low minus a few ticks OR at the low of the signal bar minus a few ticks).

I just find this a fascinating interpretation of MACD to be honest.

Regards,

Dale.


Well: so much for my ‘experiment’ (above)!!! NOTHING has happened today!!! NOTHING!!! It’s been like watching paint dry!!!

I’m tired now.

Regards,

Dale.

OK, well: still ‘at it’!!! LOL!!!

FINALLY this morning: the value of MACD exceeded the absolute value of yesterday (it’s a good job I didn’t stay awake last night right)!!! LOL!!!

So: I went long at market (ALTHOUGH looking back now it probably would have been better to place a stop order at the high plus ‘a few ticks’ of the signal bar). I’ve been looking at this thing and I know that it’s apparantely a better idea to wait for a pullback. However: I see some GRAND trades being missed if this method is employed. As noted in the text: adding to the position on a pullback may be the way to go.

Stops: I’m figuring that a good place to place your initial stop is at plus or minus ‘a few ticks’ above the high or below the low of the bar corresponding to the OPPOSITE (initial) MACD signal given (which, it would certainly appear, as I suspected, is the previous swing high or swing low).

Exits: I’m figuring to stay in the trade until either stopped out OR an opposing signal is given in which case you would obviously stop and reverse.

Regards,

Dale.


Yeh well: still ‘going strong’ and so far so good!!! LOL!!!

I’ve found another ‘prize candidate’ to try this out on: the VIX (Volatility Index). Let’s see how this goes too.

(The only reason I’m trading these is because I can take REAL tiny positions on them in order to test this MACD interpretation).

Regards,

Dale.