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MACD signal reverse

  • #1
  • First Post: Edited 4:11am Mar 25, 2013 2:59am | Edited 4:11am
Hi traders,

Simple system. Indicator used double line macd with 12, 26, 9 settings. Time frame 5 minutes. Buy when macd line cross zero line from above, sell when macd line cross zero line from below. Stop loss 30 pips. Take profit anything above 60 or use strategy which suites you. The point is you do not cut your profits short. Stop using signals once the trade is in profit. All comments to improve, ridicule and even ditch the system (if not useful) are welcome.

Thank you

For example
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  • #2
  • Mar 25, 2013 3:30am Mar 25, 2013 3:30am
Now I see. A better way to say buy when histo above "0" sell when below!

Does this seem right or inverted? Like buy when cross from below, sell when crosses from above?

Buy when macd line cross zero line from above, sell when macd line cross zero line from below
  • #3
  • Mar 25, 2013 4:08am Mar 25, 2013 4:08am
Quoting plind
Now I see. A better way to say buy when histo above "0" sell when below!

Does this seem right or inverted? Like buy when cross from below, sell when crosses from above?

Buy when macd line cross zero line from above, sell when macd line cross zero line from below
what I wrote is right, no correction needed.
  • #4
  • Mar 25, 2013 4:37am Mar 25, 2013 4:37am
Hi Bro, I used to use MACD as signal in my early day of trading without any filtering quite similar to you, it works initially (I was newbie and I thought I found a holy grail like anyone on most websites with macd system) but not after a few months, when it start making me lose money.

I'm always interested to fall back to something simple as where i started. I am interested to know if this work for u in a long run? And how do fine tune this?

MACD are by default 12 and 26 EMA, it will be a pretty slow signal for short timeframe such as 5 mins. Maybe by getting a live screenshot and a delayed one, you may get what I mean. Sorry for my English.

Cheers, hope u win more!
The only winner is the one who survive the longest...
  • #5
  • Mar 25, 2013 4:45am Mar 25, 2013 4:45am
Quoting kinspk
Hi Bro, I used to use MACD as signal in my early day of trading without any filtering quite similar to you, it works initially (I was newbie and I thought I found a holy grail like anyone on most websites with macd system) but not after a few months, when it start making me lose money.

I'm always interested to fall back to something simple as where i started. I am interested to know if this work for u in a long run? And how do fine tune this?

MACD are by default 12 and 26 EMA, it will be a pretty slow signal for short timeframe such as...
True, without any filtering MACD is not good, but what I am doing here is reversing. The slowing helps us because we are reversing.
  • #6
  • Mar 25, 2013 11:02am Mar 25, 2013 11:02am
You only using MACD as you trading tool, this indicator can be very helpful in order to set up the risk. The MACD indicator is my favorite technical indicators. Actually this indicator has many features that can improve your trading result and it is very reliable technical indicator.
This indicator is very useful for technical traders. It can determine a bearish and bullish market more accurate than any indicator. Thanks for shared.

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best lagging indicators
  • #7
  • Mar 25, 2013 11:08am Mar 25, 2013 11:08am
Quoting pepesan
You only using MACD as you trading tool, this indicator can be very helpful in order to set up the risk. The MACD indicator is my favorite technical indicators. Actually this indicator has many features that can improve your trading result and it is very reliable technical indicator.
This indicator is very useful for technical traders. It can determine a bearish and bullish market more accurate than any indicator. Thanks for shared.

------

best lagging indicators...
I like MACD too, recently I am finding more non traditional ways to use it.
  • #8
  • Mar 26, 2013 1:44am Mar 26, 2013 1:44am
Quoting kartthik
Hi traders,

Simple system. Indicator used double line macd with 12, 26, 9 settings. Time frame 5 minutes. Buy when macd line cross zero line from above, sell when macd line cross zero line from below. Stop loss 30 pips. Take profit anything above 60 or use strategy which suites you. The point is you do not cut your profits short. Stop using signals once the trade is in profit. All comments to improve, ridicule and even ditch the system (if not useful) are welcome.

Thank you

For exampleAttachment

It will not work period. Just the same as trading MACD normally will not work that is not a system just an indicator.

the only way to use an indicator successfully is to understand what it does mathematically, once you understand that you can proceed to work out WHEN to use the indicator because all indicators only work for certain market profiles and not all market profiles.

once you consider that concept you will realise that doing the opposite of what an indicator does is completely against all the mathematical principles of that indicator and therefore the indicator has no purpose and will not yield results when used in that way because the mathematics is completely wrong even if used in the right market profile

for the MACD it is showing you the difference between two moving averages and works best in trending markets.
  • #9
  • Edited 6:10am Mar 26, 2013 2:51am | Edited 6:10am
Quoting MaxDoom
It will not work period. Just the same as trading MACD normally will not work that is not a system just an indicator.

the only way to use an indicator successfully is to understand what it does mathematically, once you understand that you can proceed to work out WHEN to use the indicator because all indicators only work for certain market profiles and not all market profiles.

once you consider that concept you will realise that doing the opposite of what an indicator does is completely against all the mathematical principles of that indicator...
My intention is not to reverse all signals blindly, I am trying to benefit from the indicator's lagging nature.
  • #10
  • Mar 26, 2013 12:35pm Mar 26, 2013 12:35pm
Hi kartthik , compliments for your intuition . It's an alternative way to use Macd. Please , can you post some M5 screenshots with your buy/sell entries ? Thanks.
  • #11
  • Mar 28, 2013 9:08am Mar 28, 2013 9:08am
Quoting franz
Hi kartthik , compliments for your intuition . It's an alternative way to use Macd. Please , can you post some M5 screenshots with your buy/sell entries ? Thanks.
Hi, thank you for the compliments! I found more alternative methods to profitably use MACD which I will share shortly. I will also share the screenshots.
  • #12
  • Mar 28, 2013 12:03pm Mar 28, 2013 12:03pm
Quoting kartthik
Hi, thank you for the compliments! I found more alternative methods to profitably use MACD which I will share shortly. I will also share the screenshots.
Ok ,thanks . I'll wait your work.
  • #13
  • Mar 29, 2013 3:12am Mar 29, 2013 3:12am
Quoting kartthik
Hi, thank you for the compliments! I found more alternative methods to profitably use MACD which I will share shortly. I will also share the screenshots.

Hi kartthik,

Could you please continue with explanations, and some chart examples?

Thank you.
  • #14
  • Mar 31, 2013 8:42pm Mar 31, 2013 8:42pm
Quoting kartthik
Hi traders, Simple system. Indicator used double line macd with 12, 26, 9 settings. Time frame 5 minutes. Buy when macd line cross zero line from above, sell when macd line cross zero line from below. Stop loss 30 pips. Take profit anything above 60 or use strategy which suites you. The point is you do not cut your profits short. Stop using signals once the trade is in profit. All comments to improve, ridicule and even ditch the system (if not useful) are welcome. Thank you For example{image}
Hi Kartthik

Thanks for sharing this great indicator...

BTW, how can I make two trendlines with MACD reversal indicator? I just can make one with MACD? How do you do that ?


Thanks paul to share this wonderful idea with us all!
  • #15
  • Aug 17, 2013 12:10pm Aug 17, 2013 12:10pm
Hi kartthik , no news about your Macd Signal Reverse system ?
  • #16
  • Last Post: Sep 14, 2013 8:02am Sep 14, 2013 8:02am
Quoting kartthik
Hi traders, Simple system. Indicator used double line macd with 12, 26, 9 settings. Time frame 5 minutes. Buy when macd line cross zero line from above, sell when macd line cross zero line from below. Stop loss 30 pips. Take profit anything above 60 or use strategy which suites you. The point is you do not cut your profits short. Stop using signals once the trade is in profit. All comments to improve, ridicule and even ditch the system (if not useful) are welcome. Thank you For example{image}
'
Your trading system is absolutely correct.However buy at Signal line crossing histogram not understood.Please explain,
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