DislikedBlue mental, thanks for share this nice system.
Your heads up on G/J played nicely yesturday evening (GMT).
Wanted to ask acouple:
How many of these 1H setups you find per month (on all pairs)?
How did you come about THESE MA numbers particularly?
What are the 3 first things you look up when you first open your charts with the system?
I first need to answer the second question, then the answer to the first question will make more sense.
I had not learned much about mq4 at that stage, and I had read up what I could about MacD and various other indicators. Then I came accross a ZeroLag version of MacD, and I started investigating in the code as to what a MacD actually was. As I am sure you know, the help files of the Metatrader (specially for Newbies) aren't exactly the most user friendly descriptions of things. So the zero lag MacD code was the first code I came across that didn't use that amazing line:-
That transforms data into a MacD on your chart. Explanation of what the numbers are for in the help file? LOL not quite.
So one thing led to another, and I realised that the histograph was the crossover points. At that stage I had no idea what the 9 represented, since an EMA 9 on the screen did not resemble anything on the MacD chart. So I started messing around with EMA's and SMA's and weighted Ma's, trying to see if I could find a way (thinking at the time) of drawing a histogram of the MacD on the main chart.
It seemed seriously dumb to me that the zero line was not sloped at the trend angle of the two MA's that cross to form it.
So in my experiments, I placed various different Ma's until I found those that closely matched the crossover points (The climb above and fall below the zeroline).
Then I tried to find out what the MA9 in the MacD could match with on the main chart. From where it crossed the zero lines to where it crossed the histogram. I couldn't really find much there at all, and to be honest the 9EMA of the histogram isn't (to me at least) very useful.
The actual Ma's I came up with then, I have no idea now what they actually were numerically (my memory isn't too bad, but I can't recall numbers from 4 years ago)
So that was the end of that part in the evolution of the Monsters. It was basically to me it seemed at the time, sort of ok, but I just put the MacD in the usual way with an EMA(whatever number I used at the time, probably 50) on the main chart as a visual reminder of what trend the zero line is aimed at.
Then (as with all of us as Newbies) one thing led to another and I tried lots and lots of lots of indicators and 'systems' and webinars and... You know the drill.
Some time after that, I had become sort of ok with coding mq4, and I made a 'new' version of a MacD. Stealing parts of code from different indicators and patching them together to get it to work. Then still not really knowing what the use or purpose the Signal in the MacD's served, I wrote A MacD that puts a histogram of the difference between the MacD and the Signal.
It is actually quite effective as an indicator, but I haven't used it for ages.
It is attached. I used it as a crossover MacD with the Yellow histogram (as you can see in the pic) but the problem is in real time, when the Histo crosses above for only a short term, you don't know if it will stay above or if it is going to swing back down. Buy looking at the MacD histo, you can guess, but Burnt fingers is a frequent affair using crossovers without confirmations.
Then I got stuck in the usual Newbie pursuit.... SCALPING. So I forgot all about that 'useless' MacD thing, because trades there took ages, and I wantted profit NOW, not in a few days and definately not weeks from now trades.
There was one thing that completely did not enter my head, and I was actually totally unaware of it being part of the monster makeup, until I happened upon 'The Dance' by eclayf :-
After reading and practicing 'The Dance' it finally dawned on me that instead of using the MA's as indicators to enter when they are crossed over, I should use them as when the Bars touch and bounce off as entries for trading as well as the crossovers.
I sincerely suggest that you (and everyone) read his literature and practice The Dance, your trading will improve immensely.
That was when I drew the Monsters out of the dusty cupboard they had been hiding in for years. (They weren't coded yet, they were just groups of ma's on the screen saved as templates.) LOL, While I have been typing this epic, I have missed 2 perfect entries on the M5 chart. 1st one is 80 pips, second 50 pips.