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4 Hour Strategy (MACD)

  • #3,461
  • Apr 13, 2007 4:34pm Apr 13, 2007 4:34pm
Quoting osirisisis
I downloaded the new macd program with the red and green lines and
.015-.045 settings looks nice thx guys. But the print out of the strat says that the last setting on the macd should be MACD EMA 1. On this program like my last one the last setting says sma not ema. I try to change it to ema but I dont think I can. Will someone tell me if its just a typo on the print out or if there is a way to change it to ema. thx
This has been covered lots of times - If you have the number 1, its moving average is (believe it or not) 1, so theres no such thing as sma or ema or any other variation, you can use whatever you want, the answer will always be the same.
  • #3,462
  • Apr 13, 2007 5:22pm Apr 13, 2007 5:22pm
Hello Phillip,

I have two questions and one suggestion.

Questions:
---------------
1) If I'm in a trade (let's say a round top) and I see the macd made a pullback ( a TC) but the market did not reach my TP, should I exit the trade or should I hold on to the end?

2) When you get sometime can you please update the pdf document in the 1st post with all the tips and tricks about the strategy so that newbies will find it easier to get up to date?

Suggestion:
-------------
1) How about using a screen capture software to add some visuals to the daily wrap ups? This would certainly newbies like me to see exactly what you're talking about. Here's a link to such a software:

http://www.debugmode.com/wink/

PS. All the best to you and do enjoy your holidays.
  • #3,463
  • Apr 13, 2007 6:12pm Apr 13, 2007 6:12pm
Kappa & Alcastro:

Nice job on keeping journals that plan your trades. You both know that it is an excellent way to get a feel for the market movements and to build confidence in your trades! You both are exhibiting behaviors of sucessful disciplined traders and I commend you on your efforts! Keep up the good job. (I too keep a journal of planned trades and market observations for each pair I follow...It helps me keep a pulse on the market and stay in harmony with price action). The journal really makes you look at what is going on and see what is happening. Good Job!!

Pips
  • #3,464
  • Apr 13, 2007 6:15pm Apr 13, 2007 6:15pm
Someone asked about the 1 hour MACD setting....it is 8 13 1

Remember it is only to be used as confirmation for TC and early entry for TC. Follow the 1 hour signals and you will most likely be whipsawed out of trades.
It compliments the 4 hour system, it does not stand alone. Price in relation to the 89 and the TC will confirm entry for 4 hour. Practice with it before using live.
  • #3,465
  • Edited 6:48pm Apr 13, 2007 6:24pm | Edited 6:48pm
This week was a great week for MACD signals! Finally some reward after too much patience! Great signals were given early for cable long, swissie short, USDJPY short and even a GBPJPY short. Lots of pips went to the account (made my whole monthly goal this week!).

The key to capturing the pips and keeping them reallly are a result of how we manage our trades after we enter. Remember, Phillip always advises us to protect profit early. This is good advice -- don't get greedy (especially when counter trend trading). The best way to learn to manage your trades is to look back into history....how would you enter past set-ups? when would you take profit? how would you move stop? how did it work out? Management and exit strategy is more important than entry....find your style and stick to it. No one can tell you how to manage your trade....it is something as unique to each individual as a fingerprint.

Happy trading,
pips

ps. Phillip once used the words "shy driver" to describe my exits/trading style (& I think of it in every trade ...he also said I would eventually learn the market movements and become bolder...just wanted to say Thanks...I'm learning to put the clutch in now (hehe)...and managed in excess of 500 pips this week thanks much to your kind teachings).
  • #3,466
  • Edited 6:49pm Apr 13, 2007 6:30pm | Edited 6:49pm
Quoting Dropplan
Kappa,

I'm curious as to how you arrived at your target price of 1.9864 on the GBP/USD trade ?

Thanks
Maybe trendlines? I have one very close to that level....

Or, maybe you got one of those crystal balls from Alcastro's flea market (that's a reference to a very old post...hehehe)...

Nice projection no matter how you slice it...

& on to my next rant....This system rely's on good old basic trading skills that we have perfected individually. I like to use Trendlines and Inside Top/Bottoms along w/candle patterns. Other's rely on fibs...some on pivots...each is extremely useful in figuring our TP areas and when to move stops. Learn price action and use MACD to trigger entry....you will get the pips! Apply patience and discipline, wait for the good signals....make the pips Of course all these skills are used in relation to price relating to the MA's...especially the 21 and 89....
  • #3,467
  • Apr 13, 2007 6:36pm Apr 13, 2007 6:36pm
We've had a lot of discussion on this forum about MACD patterns (specially RT & RB)...why do we neglect MACD reading? Is everyone paying attention to it and thus doesn't need reference? Know I sometimes forget to consider the importance of .30 vs. .45 (yes, I know some zero's are missing in front of the 3 and 4). The readings might help give us some clues to consolidation vs. true movements). Consolidation is something we all must consider especially when countertrend trading.....all goes towards the breathing of the market....

OK...I'm done...have a good weekend all!

Phillip, Hope your holiday was extremely relaxing and beautiful!

Pips
  • #3,468
  • Apr 13, 2007 6:44pm Apr 13, 2007 6:44pm
Quoting ira
Personally for me, the last two days were very hard. I didn't take TC signals neither on EUR/USD nor GBP/USD, because the price was near strong resistance levels (price levels 1.3500 and 1.9800) so I waited for retrace.
One more lesson - trend is your friend, and trust Phillip's system as it works excellent! So I was painfully wathing for the price climbing up.
Well, from time to time we all have to fight two evil twins (as Phillip called them) - Greed and Fear. I will spend my weekends reading the thread again and listening to all MP3 files, it will help me to restore confidence.
Thanks everybody contributing in this thread, I read it every day, and it helps me greatly.
Have a good weekend!
Your apprehension to enter the market was understandable....the levels are extended and you figure, how much more can these pairs run? I too battle that "analysis paralysis" and have come to realize....if your not comfortable and your stop is too large...don't take the trade & don't kick yourself for not taking it. You will have another opportunity at another time that makes you feel OK. Also, realize that the market will do what it wants and has no limitations based on what we as individuals think. If the signal is good...you have secondary confirmation (for me it's first) from price action...and your r:r is good or excellent...take the trade. If price action doesn't confirm MACD signal...your r:r is poor (which in late entry for cable it would have most likely been)....don't take it. Price will retrace to a better level where you can enter more confidently. reread the thread and backtest 30 - 50 trades....bet your confidence in trades will improve.
  • #3,469
  • Apr 13, 2007 9:58pm Apr 13, 2007 9:58pm
Thanks for posting the 4Hr MACD trade strategy. I'll test it and get the results back to the forum. BT
Hej.
  • #3,470
  • Apr 14, 2007 12:54am Apr 14, 2007 12:54am
Quoting Dropplan
Kappa,

I'm curious as to how you arrived at your target price of 1.9864 on the GBP/USD trade ?

Thanks
Hi Dropplan,

That is trendline resistance drawn from December 2004.
  • #3,471
  • Apr 14, 2007 12:12pm Apr 14, 2007 12:12pm
Dear Phillip

Many thanks for this methode .. I am 3 years in forex but I was looking for a 4h strategy as I dont have enough time to monitoring the market all the day .. finally I find ur strategy .. I test it and try it on demo for more than 3 weeks and I have one question and wishing to get an answer from you or from any other members..

As I understand that the entry point when the macd give a signal but I see the bar is moving up and down and its not stable so how I can come over this point ?

Many thanks in advance
  • #3,472
  • Apr 14, 2007 1:33pm Apr 14, 2007 1:33pm
Phillip,

I have been studying your 4 hr MACD system for some time now and backtesting it extensively. I have been very pleased with the results and have to say it is the most accurate and least complicated system I have seen. I must commend you on all your hard work and many hours spent.

I have been testing it on all TF's but like the daily the best. I use the MA's as targets, S&R and S/L barriers. I like to use TL breaks as my entries as I prefer to use market momentum with the Trend (reduced risk) The MA's you have chosen are excellant as they are crucial in all my decisions.

I would like to submit one more MA that I have found to be extremely powerful as a strong support / resistance barrier---the 200 EMA.

Perhaps you have already tried it along with your 200SMA but I thought I might mention it to you & the forum as a small contribution.

Thanks again to you and everybody who has made this forum so fantastic.
70% expectancy rate with proper SL placement.
  • #3,473
  • Apr 14, 2007 3:30pm Apr 14, 2007 3:30pm
Quoting pips4uandme
This week was a great week for MACD signals! Finally some reward after too much patience! Great signals were given early for cable long, swissie short, USDJPY short and even a GBPJPY short. Lots of pips went to the account (made my whole monthly goal this week!).

The key to capturing the pips and keeping them reallly are a result of how we manage our trades after we enter. Remember, Phillip always advises us to protect profit early. This is good advice -- don't get greedy (especially when counter trend trading). The best way to learn to manage your trades is to look back into history....how would you enter past set-ups? when would you take profit? how would you move stop? how did it work out? Management and exit strategy is more important than entry....find your style and stick to it. No one can tell you how to manage your trade....it is something as unique to each individual as a fingerprint.

Happy trading,
pips

ps. Phillip once used the words "shy driver" to describe my exits/trading style (& I think of it in every trade ...he also said I would eventually learn the market movements and become bolder...just wanted to say Thanks...I'm learning to put the clutch in now (hehe)...and managed in excess of 500 pips this week thanks much to your kind teachings).


PIPS....Huge congratulations on your resuts. As`I once said, you are a PEM (Pip Eating Monster)!!! You deserve every pip. You are a master analyst of the market....and a rigurous backtester. I guess this week results are a prove that discipline and confidence always result in good things.
  • #3,474
  • Apr 14, 2007 3:44pm Apr 14, 2007 3:44pm
Quoting alcastro
PIPS....Huge congratulations on your resuts. As`I once said, you are a PEM (Pip Eating Monster)!!! You deserve every pip. You are a master analyst of the market....and a rigurous backtester. I guess this week results are a prove that discipline and confidence always result in good things.
Alcastro,

LOL!! I'm a PEM!!!!!!!

Thanks for all your support!

PS...I got a great PM wondering where the regulars had gone...much appreciation expressed towards all who have contributed and wishing input to continue...So keep up the good work everyone....People are learning and making PIPS!!!!!!!!!
  • #3,475
  • Edited 1:43am Apr 15, 2007 1:42am | Edited 1:43am
Quoting pips4uandme
We've had a lot of discussion on this forum about MACD patterns (specially RT & RB)...why do we neglect MACD reading? Is everyone paying attention to it and thus doesn't need reference? Know I sometimes forget to consider the importance of .30 vs. .45 (yes, I know some zero's are missing in front of the 3 and 4). The readings might help give us some clues to consolidation vs. true movements). Consolidation is something we all must consider especially when countertrend trading.....all goes towards the breathing of the market....

OK...I'm done...have a good weekend all!

Phillip, Hope your holiday was extremely relaxing and beautiful!

Pips
Hi Pips,

I used to pay attention to the look of MACD shape not to MACD reading.
All through this forum, this topic has never been well discussed.

Hope you could elaborate on MACD reading.

Thank you for your repeated contribution on this forum!
  • #3,476
  • Apr 15, 2007 7:28pm Apr 15, 2007 7:28pm
Last week was great, more delicious pips for my account.
Thanks Phillip!
  • #3,477
  • Apr 15, 2007 7:34pm Apr 15, 2007 7:34pm
I was able to setup MACD coloured. How interesting. I need help in interpreting the following.

1. What does the number next to the current candle indicate?
2. If candle is green (bullish) but MACD is Red, how is that to be interpreted?

Can some expert enlighten me on this?
  • #3,478
  • Apr 15, 2007 7:37pm Apr 15, 2007 7:37pm
Nice work pips4! I've been working on a script that creates an audible alert and sends an email when a trend continuation signal happens. There are a lot of pips to be made on tc signals. But, I've been fighting with MT4 to correct the test mail error:

mail: error connecting with smtp.knology.net

I've been in touch with Knology, Bluebottle, and waiting to hear back from Metaquotes as well.

Here's the thread about my 'issue'

http://www.forexfactory.com/showthread.php?t=23638

If anyone can help...please do.

I have no idea how to resolve the problem. I've tried everything but still get the error...
  • #3,479
  • Apr 15, 2007 9:06pm Apr 15, 2007 9:06pm
Quoting kappa
Hi Pips,

I used to pay attention to the look of MACD shape not to MACD reading.
All through this forum, this topic has never been well discussed.

Hope you could elaborate on MACD reading.

Thank you for your repeated contribution on this forum!
Hi Kappa!

I was just thinking that in the "early" days of Phil's strategy we use to consider the levels. Below .0015 was directionless especially with little mounds flipping back and forth ( I have also found consolidation w/slow moving correction at extreme level over .045 too). Seems really nice moves are caught if you can catch the turn off of the .030 line (I don't know if I have the right number of 0's in front...sorry, I dont have chart open).

Then, I was thinking, and this might be the reason...does the indicator you guys use w/the platform give you a heads up on level w/the red and green bars? I don't use MT so my trading is strictly off of eyeballing the charts. Really interested in knowing the velocity of moves at different levels and would appreciate any contribution people would be willing to make regarding their trades and what the MACD looked like and at what level it was at.

Thanks so much all!

Pips
  • #3,480
  • Apr 15, 2007 10:12pm Apr 15, 2007 10:12pm
Quoting aboammar
Dear Phillip

Many thanks for this methode .. I am 3 years in forex but I was looking for a 4h strategy as I dont have enough time to monitoring the market all the day .. finally I find ur strategy .. I test it and try it on demo for more than 3 weeks and I have one question and wishing to get an answer from you or from any other members..

As I understand that the entry point when the macd give a signal but I see the bar is moving up and down and its not stable so how I can come over this point ?

Many thanks in advance
Hi aboammar,

I may be misreading your question...wait for the bar to close before entering a trade, that way you don't jump the gun on a "false" bar reading....think you were addressing the current bar...If not...do you have the correct settings for the 4 hour on your charts?
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