DislikedInteresting strategy. I love the concept of the MACD and the moving averages you use. Most of all, I like the profit you're making. Awesome stuff.Ignored
Most people get the wrong idea behind it. Everyone (85%) wants to predict price.... and hence criticises it for being a lagging indicator. When you go to a checkout in a supermarket, no one cares who's going next in line...they stop and look and compare several aisles to get a feel or an average of what's normal flow and pick which one has flow because even a short queue can be slow compared to a long queue with fewer items to checkout. Same with EMAs, they look at most recent price.....the average is then the surrogate of the market for that time frame.... It is the flow. If price moves above or below it, it's not necessarily for us to predict where it will go in the next 50 pips....but where is it in relation to TREND.
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I will always trade WITH TREND, trend being defined by a Higher Trend...
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The other analogy is that of a stretched rubber band, where it's rest state is zero. How would you know how far to stretch?
A pip is only worth it if you know how much you risked to earn it