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I don't make predictions, don't believe in them. - Simply "playing the odds" that if a stock or etf is above it's moving average or trend-line etc. there's "a chance" it will stay there awhile longer, - if it doesn't, dump it.
Can you help answer these questions from other members on NexusFi?
Depends on how you use moving averages. I use MACD to predict the market, in the form of standard divergence. MACD is just simply a couple of moving averages, and the relation between them.
If an indicator has any value of the current bar in it's formula, it is incorporating the 'real action', not just showing history. When a price action trader looks at a double top, a trend line, a wedge, a historical S/R level, etc. etc., he is incorporating history in his analysis. If you look left when you analyze a chart, you are looking at history. Indicators are price action analysis translated into a formula, what it comes down to, is your interpretation of what it is telling you, just like your interpretation of the significance of 3 red bars followed by on green bar.
If all the different lengths are aligned and uniform (red for down green for up) look for pullbacks or compression/expansion.
If all the lines are compressed tightly on top of each other with little or no slope , wait for expansion
Exit at Target or Exit at next compression or Exit when Price crosses the longest EMA against your position, depending on what you feel more comfortable with.
I'm just a simple man trading a simple plan.
My daddy always said, "Every day above ground is a good day!"
Very glad to see you back and posting again. I love your implementation of the line on close bar type. How do you get the close dots and how do you get your line to change color based on whether it's an up close or down close? Thanks.
I don't know how he did it, but here's what I would do. whatever chart style you're using, make sure to put everything to transparent. and also it's for using range bars.
Yeah, all the guys looking for MACD crossovers, and zero line rejections, etc. on 5m, 15m and 60m charts. I don't even display those macd attributes on my charts.
I did a quick search and couldn't find any general thread about trading divergence. Existing threads seem to be focused on specific indicators or vendors or hidden divergence, etc. Since you trade divergence, I hope you will start a new thread just to focus on the broad topic of trading divergence, and you can share why you use MACD vs RSI or other indicators but more importantly I think the topic should be on identifying divergence that works vs a failed divergence.
