On M1. the blue line marks where the HMA24 changes color, so it will be seen at the open of the next bar. There is already 1 up candle closed above HMA.
Yellow marks on M5 where the buy would be on the open of that bar, because an up bar closed above HMA after the pullback. Note on H1 this is stoch8 crossing 50. So if I were watching M1 for a possible earlier entry thatn on M5, it would be at the earliest shortly after the bar with the blue line closed and at the latest, the open of the bar with the yellow line, same as using M5.
Also note that if I would have come to the party a little late, I would use that pullback before the green vertical on M1 to find a continuation entry. When the big up bar before the green vertical closed, that would signal to buy ASAP. You can see that pullback on M1 was hardly even felt on M5, but it certainly gave a worthwhile entry.
An-n-n-n-d-d-d-d.... for an interesting exercise, put a vertical where I put the blue vertical. Switch to h1. See a nice solid up leg? Switch to M15. See a nice up leg followed by a pullback then followed by a (not so nice) continuation? Put a vertical at the start of the pullback and the end of the pullback. Does this setup look at least vaguely familiar???
Switch to H1. Look where the two verticals are that marked the pullback.
And as another interesting observation, on M15, does it look like the continuation leg maybe is ending, because 2 down bars are closed? If it is actually ending, does the continuation leg tell you anything about this up move?
(The markets are speaking to you. Do you know their language?)
What about length of move (leg).
Probably you'll say
b) wrong TF
c) you don't get it
but doesn't the last leg down show more momentum than this leg up? And isn't that relevant? (I chose M15 only because it shows visually what I tried to understand)
And isn't it relevant that no new higher high formed (in leg up, move 3)?
Since a few days this thread is a discussion between DrDave and Josi without any relation with the initial topic (MACD).
Please guys make a new thread.
I hope that you can clarify: 1) What Moving Average is employed in this STOCH? (EMA, SMA etc.)plus you set tu high,low or close /close?
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