Nanningbob 4H trading system

Will the folder be posted tomorrow?

are you sure cause those two pictures are at different points in time.... Its well known that the macd can change position from what it looks like now to 4 weeks from now....

The yellow vertical is at the same point in time on both pictures.
I placed the line only once.
I moved the chart back to illustrate that the MACD is not stationary, in relation to the stochastics.

EDIT- Zoom in on the two charts.
You'll see the time stamp at the bottom of the yellow vertical line.
It's the same on both screenshots.

2009/3-10/12:00

yeh i know but what im trying to say, and what is explained as 'the one weakness' is that the macd position today wont look the same 3 weeks from now looking back... cos we arent trading back in time it doesnt matter, we aree trading at the right edge and we take its signal from the right edge position

The MACD placement is just as arbitrary and random on the right edge of the screen as it is any other part of the screen.

It is not tied to the stochastic levels. The stochastics are related to those levels because they are stochastic levels, they are not MACD levels.

The MACD is fitted onto the screen, to make it's highest point the same distance from the top of the pane as it's lowest point is from the bottom of the pane.

If it coincides with 15 or 85, it's pure accident.

Here's another example.

The first screenshot shows the Red MACD line well below the 15 (My yellow vertical line)

The second screenshot is the same thing, except I've merely zoomed out a notch.

At my yellow vertical line (same location as in the first shot), the MACD is almost half way up the scale.

The thing is not stable. The MACD 15 and 85 readings, you are using are illusions.
They are caused by MT4 trying to center the screen and fill it up. They have no relationship to what the MACD is actually doing.

The MACD shift is not that big of a problem on a 4H chart because by the time it starts shifting you are days down the road and the trade is usually done by then. Remember from one line to the next is a week and if you see the shift in the next week your 5 days past the trade. Also notice the white line moved up and the blue line did not. With the bounce off of the 20 MA you know not to stay in the trade. It would still have been a profitable trade but a small one at that. The white line will give you a warning of the MACD shift because the blue does not go with it. That is the improvement I have over the previous version we had tried last year. This then could have been taken as a trend continuation trade. It also would have been a small profit or break even. The time frame of this trade your showing is about 36 hours, 9 bars. There is plenty of time to react. Also you dont have a clear cut move off of the BB bottom line, some trades will go sideways and there is not much there but either way there is no big loss here. I see you have a sell on this trade and am heading for trouble.

One last comment you dont have all the parameters of the trade. The red, white and blue are not bunch together below the 15 at the same time, they are spread out plus you are not at he bottom of the BB, so this is a very weak read of my system.

Bob,
The MACD line is serving absolutely no purpose.
If you don't see that by now, it's my fault for not being able to adequately explain it.

The shift you are talking about is not a shift from accurate to inaccurate. It is never accurate to begin with, in its relationship to the stochastics and their levels.

Trying to superimpose unlike indicators and using the levels of one for the other, is a common mistake.
It does not work.

I'll leave it alone. I've given it my best shot

I'll make one last reply.
I was not addressing your system and whether that was a trade setup. I never claimed it was one.
I was showing you that the position of the MACD, the way you are superimposing it, is arbitrary and has no relationship to reality.

Sorry to disagree with you but I have been using this for almost 2 years and have taught it to a couple of friends. It does work very well on a 4H chart but not on lower end charts. My win ratio is over 70% and at times greater than 80%. The only weakness is long runners and they dont happen very often. When they do it is usually the aud, nzd, and cad currencies that do that. The white line warns you of these so that is a key read. Thanks for your input though, keeps me on my toes.

i see what ur saying billbs...

easiest way to explain is go.. look at ur macd line and where it is at currently... now zoom in and out and see how it moves....

maby Bob can clarify but im pretty sure you should be seeing 4 weeks worth of data on 4hr

To recap...

The idea of the floating MACD is based on where it is at now. What it does after now, 1 week ago, 2 weeks ago, 3 weeks ago matters little. We dont need that information. MACD a lagging indicator does not move quickly with price so it stays steady until price has clearly changed but then its read is to slow in a ranging market. It is not a good indicator when price is ranging. The sto is a great ranging indicator but horrible in trending markets. They both have strengths and weaknesses. If you combine them they help overcome each others weakness by using their strengths. If price is trending strongly the sto lines will stay on one side of the MACD. If there is a retracement in the trend the white will go with it, while MACD will move very little or none, and the blue sto may move a little. This is the MACD strength and using the Sto weakness to indicate trend is continuing. This will be confirmed by the 20MA in the BB. So the Sto weakness on its own becomes a strength in connection with the MACD. We see the quick reacting sto giving us a false signal but the blue and red staying steady so we continue with the trend. This weakness of over reacting then gives us a point of reentering with the trend. So even if you did take the trade. Price still moved in your favor but maybe only for a candle or two. Then it is back to the trend. So that is how the weaknesses of the two working together make a strength.

IF MACD continues to move in one direction and thus changing its position on the chart, the blue sto line stays with it confirming this strong trend. The BB visual on the screen showing a 45 degree angle will also confirm this. This is the reason I added the 3x3 cross on a 4H chart because it will not enter until there is a clear break with the normal trend. At this point you have stayed out of the trade and eliminating almost all the problem of the MACD shift. If price decides to shift back into the trend after you entered that will show up with the white line going back in the opposite direction.

So the white and blue lines are used to interpret the movement of the MACD. The EA keeps you out of the trade until there is a reversal move going on. IF it is not a true turn around they will tell in plenty enough time to keep from getting a big loss. Again once your trade is in profit you put your stop losses and TS and TP in and you can monitor the trade. When you get a 3x3 cross on a 4H chart I have always seen some kind of profit, it is just a matter of getting your SL and TS and other things in. Sometimes it is just one candle that moves in the opposite direction but that is usually rare. Normally price will retrace at least a couple of candles on a 3x3 cross.

Any way if MACD has moved but that was 3 or 4 weeks ago on your chart. It makes no difference to what it is telling you now. Here is how it works. IF you turn on the EA for the trade it stays out until there is enough of a retrace to cause it to enter. I used to do this manually with some success but I would get whacked once in a while. That is because I couldnt wait for the reversal. With the EA waiting for you, my chances of succeeding went way up. I leave the entrance of the trade out of my hands because there is no such thing as an indicator that predicts reversals. This system gives you signals that it is probably coming but you dont know when. The 3x3 cross is what catches the reversal. The white and blue lines will tell you whether it is real or whiplash. I dont know how better you can make the system. It does keep the guess work out. When the 3x3 cross happens, enter, if white and blue got together stay in, if white only goes then get out. To me that is a good read and solves the MACD wandering problem.

I AM SORRY FOR THE DELAYS BUT I CANNOT GET THE REST OF THE FOLDERS TO UPLOAD. SOMETHING IS WRONG ON FF END BECAUSE I CAN GET ANYWHERE ELSE I WANT ON THE INTERNET. I ALSO AM HAVING TROUBLE POSTING.

The above was an explanation of using the system to spot reversals and strong trends. When the market is ranging, the MACD line goes flat and gives you no indication of what is happening or is very difficult to read. Now the white and blue lines of a sto are at their best. BB is ranging flat, MACD is flat, now you have the great strength of a sto indicator to use. When both are above/below 85/15 and your on top/bottom of BB. That is a great signal. You turn the EA on and let it enter on the cross. If price suddenly takes off on you and begins running up the BB, the 3x3 cross has not happened and you are not in the trade. That 3x3 was designed to keep me out of the get in too early syndrome that plagued me with this system. I have always loved this system but that one trade running up the BB would kill me. Now I have a protection placed that protects me from one of my greatest trading weaknesses. The EA forces me to have the patience I dont have as a trader. Since I have been using it, I noticed sometimes it will take days for it to enter. That is a good thing. I showed you the GBP/NZD trade on page 1. I turned that on on Thursday and am still waiting for it to enter. I am sorry to admit I dont have that discipline but it does. So I want you to understand that I understand the MACD weakness and how I have dealt with it. It still is a great indicator.

I am going to try to post the rest of the system here. Let us see what happens. OK someone is blocking me posting the system. Here is the message.
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Your cache administrator is webmaster.

OK here are some more. Maybe I can get this stuff loaded. Here are the EAs

here are the indicators and templates

here are the profiles and scripts

The music wave still wont load but all the important stuff did

To show how MACD can distort if you go to far back in time here is the Eur/chf for the year and for the last month. The big spike early in the year would distort all the other MACD reads but that happened months ago and has no relevance to now. So getting a 4 week read gives you a good handle on what is happening. I want to make sure you understand the why's of the system. Why that spike months ago has no effect on decisions of today and seeing what is happening over the last two or three weeks is what is really relevant to this system. I hope you understand what I am trying to say.