Top and Bottom M5 Trade

I wish to present the trade in M5 chart by picking the top or Bottom and the Indicators used are

MACD 12,26,9

MACD with crossing 12,26,9

Slope Directional Line

I am attaching some charts on this basis for the members to review
and over a period of two days I will explain these charts and also how to
trade this method. Right now I am in the process of preparing the document .

Basic approach to this trade

Buy: MACD with crossing as well as MACD both down in M5 Chart

Sell : MACD with crossing as well as MACD both at the Top

But I wish to explain more about MACD and how to prepare for trade
by Looking at the MACD whether the forthcoming trade will be a buy
or Sell

MACD In M 5 provides good explanation of who is going to take charge of
the Market the buyer or seller. MACD also provides the Indication of
trend reversal . The PIP goal is from 10 PIP to 100 PIP depends upon
the market and timing.

UP Date

In M5 chart the EMA 100 is appled to MACD indicator

Drag the Moving average to MACD section and apply to first indicator

If the MACD bars are above EMA 100 in M5 wait for a pull back and enter long .

If the MACD BARS are below EMA 100 in M 5 wait for a pull back to enter short

Since you are using the crossing of the MACD and the signal line, you don't need but one of the MACDs that are displayed. They both show the same thing in that respect.

Yes I understand but the second MACD in terms of bar gives me some additional comfort of the exhaustion of the buyers or sellers in the market

harigp

Why isnt there a signal at A ?
Cheers

Paulus

I am attaching the gold chart and you can see the fall in gold and how deep the MACD has gone down and there was a similar fall second time which was equal in price terms as shown by the red line but if you see the deepness of MACD at the time of second fall it has not even reached the first MACD fall, signifies the interest in buy

But the two are identical, for what you are looking at- the cross of the MACD with the signal line.

Hi billbss

My first observation is the MACD bar and I cross check the bars with similar price raise or fall because even if I have the cross
I may not enter for trade ASAP but to wait little bit.

GJ Entry Long based on the attached chart on M 5

harigp

can you explain in more detail why you took this trade ie

what is each of the inds doing ? what you are looking for in the case of the long ?
why are there no signals at my blue circles ?
and what did you use to gauge the exit ?

also what use is the blue and red ma please ?

cheers

Paulus

Paulus

This entry was based on the divergence noticed in M 5 chart Low and lower low and in the two latest dip the MACD crossover had equal distance.

The indicator in the chart is slope direction

If you type MACD Indicator in the internet lot of eg are given with MACD
Divergence

The blue circles are just to show the low and lower low. I use exit based
on the PA

Right now you can notice similar set up in EU

So you're not looking for the MACD cross, you're looking for the MACD cross AND the divergence (IMO a much better edge than using only MACD crossing...)

It's your preference, but I second Bill... don't see tthe reason for the 2nd MACD window...

And as Paulus asked, how are you using the slope line?

Thanks for sharing!

Cheers!

HT

MACD crossing is just added comfort factor may be you can avoid. Slope direction line I am using to gauge the PA Strength.

ah ok so this is a divergence entry system ?
and the set up on EU is this ?

Paulus

and £$

is this your principle..ie

detect the divergence marked by the thumbs up
Enter on the cross marked by the arrow

P

Paulus

Yes I am having a trade in EU with similar set up like the chart you posted I also look into the MACD bar
deepness compared to the previouse fall to trade for long and for short

please let me know if you have this one ...

My TP is just the 61.8 retracement of the up move

paulus

hmm

pity i didnt trade it on the live account..

TP was the 61.8 retracement level

P

Paulus

I Looked into that Au chart that was a good entry point . The points I noticed to pick that trade is that when the price fell the sharpness in MACD fall is not very deep plus the support it got compared to the previouse fall.

I like to mention few things about MACD CROSS.

After noticng the good divergence if the macd cross is still playing above the zero line you can pcik few pips if it retrace but shold not cross down
the zero line.

If the MACD crossing is flat switch of the computer and come back later

Took a trade in EU M1

Long 1.3466 TP 1.3480

observation for taking long

The previouse fall in EU the MACD was down very deep

The current fall in EU the MACD DOWN was very minimal

MACD crossing indicator supported in the zero Line

1min too quick for me and too much noise 5min is just right imo..not alot of noise but not so quite it gets boring ..just picked up a nice trade here