Post of the Day: Nothing Happens Until It Happens

[B]Student’s Question:[/B]<b style="">

I’ve made trades where you enter a position when it looks like the MACD is going to intersect but it doesn’t and it goes even further in the direction in which it was going, ultimately hurting my account pretty bad, any suggestions?

[B]Power Course Instructor’s Response:[/B]<b style="">

Sure…

First and foremost we only want to take trades in the direction of the trend on the Daily chart…that is the first filter. Don’t let the MACD (or any other indicator for that matter) decide the direction of the trade…let the trend do that. Then use the MACD to fine tune the entry in that direction.

Also, it is advisable not to take a trade when it looks like something [I]might [/I]happen…wait until it [I]does[/I] happen.

A good axiom to trade by is…“nothing happens until happens”.