at Elliott Wave theory 
tymen please continue I wish to catch the candle at the point P
Orrrr, rather than being a bunch of âyes-men,â you say what you feel which can often makes things even better.
The six thinking hats: Six Thinking Hats - Wikipedia, the free encyclopedia
Iâm not saying that it was said in the most constructive way to say it but it does help to put the âblack hatâ on and criticise things
Finally caught up with this great thread after 3 days. This is my 1st post too on Babypips and its nothing but praise for Tymen. Genuinely unselfish people are very rare especially where I come from in Hong Kong. My guess at Tymenâs next idea for efficiency is to somehow use Bollinger bands along with candles. He is coming round full circle. Am I right?
[B][U]Answers to questions[/U][/B]
[B]1) Give the correct candle number for the entry and the correct candle number for the entry.[/B]
We appear to be getting errors here.
The correct answer is candle number 2 - NOT 3.
Not sure what the problem is?
The exit candle was correctly answered = candle 8.
[B]2) Is this a short or a long trade? Why?[/B]
Obviously a short trade - the MMACD is below the zero line.
[B]3) Do we make a profit or a loss? [/B]
Again we are getting wrong answers and I am not sure why.
The correct answer is - a large loss.
The entry candle is well below the exit candle.
entry = 95.95 (candle 2)
exit = 97.56 (candle 8).
loss = 161 pips.
I tought that exit candle is candle â7. as soon as candle#7 closed, we must exit. Is it what we were studing
D$%#@ Iâm good, I would have made (mad) money all the way 
Sorry for you guys 161 loss 
What looks like a nice beginning of a downtrend on M30 may be deceiving, looking at the M5 chart.
I am looking forward to your teaching Tymen. Thanks for your time 
I would have also chosen entry at candle 3 open. Since the cross is candle 2, i would have waited till candle 2 close, entry candle 3 open to make sure the cross was confirmed on #2 close. If I entered during candle 2 I am running the risk of the cross not happening after i made my entry. Maybe this is why we have so many #3 answers.
as I understood things
Signal for entry or exit is the close of the candle when the cross happens. The line disects the candle that we are interested in. To ensure that the close is complete, it is more practical to enter on the open of the next candle. so close of candle 2 = open candle 3 for entry. Candle 7 is disected by line so close of candle 7 = open candle 8 for exit
Someone got it right on post 590:rolleyes:
Agreed - no arguement here.
Candle 7 is disected by line so close of candle 7 = open candle 8 for exit
If you look carefully at the chart (#578 page 58), you will see that the crossover has not yet registered at the close of candle 7.
At the close of candle 8, the crossover has well and truely registered (the MMACD is already on its way up).
The pink vertical line is in between 7 + 8.
Thus we need to wait for candle 8 to finish before we can confirm the crossover.
Hence an exit on the [U]close [/U]of candle 8.
This type of observation tends to trick us up!!
Originally posted by [B]Simonjf77[/B]
Entry on C2, Exit on C8
Itâs a short trade and it makes a loss
Simon got it correct!!
Congrats to simon, however I am still struggling with this. If i enter on C2 when the MMACD is <= 0 before the candle closes, i run the risk of the price moving back up and the becoming MMACD => 0 before C2 closes, that is why i answered enter on C3 when the cross at C2 is set in stone.
So tymen, how do you address the issue of entering on C2 before it closes and running the risk of the signal going away if C2 closes up?
Following thro with these calculations we look at a complete set of daily timeframe trades of USD/JPY >>>
The outcomes have been carefully worked out and double checked.
Listing the outcomes
Note that the yellow bands are very narrow. Here the MMACD returns very quickly to zero crossover and losses in these yellow areas are expected as a rule.
from the leftâŚ
light blue area = -242 pips
yellow area = -270 pips
orange area = -161 pips
2nd yellow area = -310 pips
purple area = +400 pips
green area = -65 pips
grey area = -215 pips
3rd yellow area = -268 pips.
Total = -647 pips. (errorâŚcorrected to -1131âŚsee below).
A big loss!! :eek:
Not looking good is it?!! :eek: :eek:
So now we move on to efficiency, much needed!!
[B]Talon D (Honorary FX Member) [/B]and our new reader [B]TraderAlan [/B]have seen the light.
They have both correctly seen that my [U]rhythm of life[/U] cycle is the Bollinger bands.
Since we are dealing with living beings and not dead inanimate objects we have a living rhythm to the price action.
This life of the price action is very clearly shown up in the Bollinger bands by revealing a pulsating rhythm of price deviating to extremes only to contract again to the norm.
The Bollinger bands is our first great step in solving the efficiency problem.
What we do isâŚ
Enter at the crossover of the MMACD.
Exit when the BB [B](short for Bollinger bands)[/B] are at maximum deviation, that is at the âbreathe outâ section.
We will then get the best price range and hence, the best profit.
Moreover, we get to exit much earlier than the MMACD exit crossover.
Moreover, this could also avoid some (not all) of the losses that are generated by [U]rapid return to zero[/U] MMACDâs.
Using the Bollinger bands is our first step to improving the trades.
[B]There are 2 more steps we are going to use.[/B]
[QUOTE=cubanpip2010;175102]Sorry for the correction [B]Tymen1 (Honorary FX Member)[/B]
I see another [B]Total = [U]-1131[/U][/B] QUOTE]
Let me check that again.
Ahh Yes you are correct!!
It is late at night here and I missed some of the numbers!! :o :o
But thatâs no excuse.
Thank you for pulling me up.
[B]So the correct total is -1131 pips.[/B]
[B]Thats even worse than before.[/B] :eek:
Anyhow, the BB and the other 2 improvements will now solve the problem.
But its getting very late here and with the incessant hot weather, I need to sleep.
So we go into this in detail tomorrow!!
Sorry for the correction [B]Tymen1 (Honorary FX Member)[/B]
I see another Total
Itâs even worse
tymen, are you still here? I would like to ask how to deal with the price gaps?
I was exit from good trade becouse of the price gap. I dont know if the price gap can affect the trade and how MMACD react on gaps?
OK, last post for tonight.
[B]RenaLa[/B], I hope you are not trading this method live. :eek:
If so, you are playing with fire!! :eek:
The method is by no means complete and you will incur the kind of losses shown on those charts of mine!! :eek:
The MMACD does not react well on gaps, but right now, you should not be trading this method (repeat!!)
Learn and let this work finish.
You have a terrible tendency to jump the gun - a NO NO in trading!! :eek:
Yes I was trading on a live account. I realized that zero level
MMACD corresponds to the resistance or support level of the price. Am I right?
from my understanding its very safe. I look forward for continue of this presentation. thank you tymen