Disliked{quote} Am increasing my confidence on this backtesting more & more as well. Thank you bro I need more clarification on some issues on Deal 3, 4 and 5 Deal 3: is it possible to look further to next macd after the macd signal ? if no okay if yes, i might look to take the trade because the candle fully broke up the 8ema & retrace back to it then move away to close above the 8ma with a good double RB. though our chart candle little diff but close to same thing see attched. Deal 4 & 5: I understood the comment on Deal 4 said "Because of trend trading...Ignored
I did put the screenshot to it!
Deal3:
Well the rule is telling: if far below ema8 it tends to go back to the ema8 and after that it will continue it's down direction (that's the market-rhythm)...maybe with touching the ema21... (that the market decided in an otherway in this case....well that's trading, you never know for sure )
Now the price is standing at the 8ema ( in your chart also arround halfway 8ema/21ema)
the last swing lows are untill now lower and lower...also the last swing highs are lower and lower...so there is no sign for a trend reversal in my view.
Well ofcourse you can look to the next candle as you mentioned (phil also said this in the exercises)....but isn't this candle not a sort toutching of ema21?!
besides that... you never could now that the FED was saying what they said...(they do not stop with QE for now..). well actually you can know it... because they never can!! But that's another forum thread The point in this is....there was news... and the market just reacted with 300pips (!) or so you never could know this at the time the bar was formed.
Maybe you could work here with divergency on the MACD...but at the moment that's one bridge to far for me!!!! Maybe Yvon can tell more on this case!?
Deal4:
Price is between sma200 and sma89... so we need to deal with trend trading.
I remember Phill was telling it as follows in one of his lessons (well I tell it in other words ofcourse ):
the channel is in this case Upper barier: sma200, Lower barier: sma89
If price below and arround sma200....and we have a sell signal on MACD ... we may can go down to the sma89 (respect also ema's etc..)
If price above and arround sma89... and we have a buy signal on MACD ... we may can go up to the sma200 (respect also ema's etc..)
that I was telling in deal 4:
we are arround sma89 (distance to sma89 = +/-20 pips)...we have here a MACD signal (sell)...actually I want to see a buy signal here...so No Deal
In deal 5:
we are arround sma200...we have here a MACD signal (buy)...actually I want to see a sell signal here...so No Deal
And look at deal6:
we are arround the sma200... we have here a MACD signel (sell).....that's what I wanted to see....Deal... go down and respect the ma's etc...
Thanks again for your comment and have a nice weekend!!
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