{quote} Thank you very much for your reply, Yvon. So can I conclude that not all MACD zero break can be traded. It all depends on the market rhythm. One got to study the market pattern to determine if price is going to move on. And When price break the MACD zero level, it is also when price has crossed the 21ema. It sometimes continues to move on and when it does so it moves away from 21ema. However, there are times when the market break the zero level on MACD, and it does not last thus, price turn around instead of moving on (forming BOZ). This...
Phillip Nel ,takes the Trades according to the rhythm. It means that he take all trade as they come,sure he knows the rhythm and his final result is with profit if you remember reading is comments in his early pages. The pdf chart shows many formations on which he traded.
It doesn’t mean that he will make profit on a specific trade, but the final result is positive. It is well represented in the chart taken from his pdf from page one.( the chart you shown with T1 etc). But I have mentioned, I do agree with him about those trades.- in my case I like to read the rhythm, it makes the history of the market, so I can anticipate.
And I thank you for lifting that concern. Just to say to you that the trades done with the rules works fine. And as per Phillip Nel, meaning acting accordingly to the rules and configurations(RT,RB, etc) you should win and loose some but final is with gain.
Also ,I my case, when I see a RT, sure I can take a trade there, if a second one is evidently coming, well, I have the possibility to take another trade there too. And if third wave is coming (RT) well, why not again?--- But If I can see that all those three RT forms a HS, and if I should expect a possible breakout of neckline with usually a strong candle, I’ll stay short, for sure!, this is part of recognizing formation and their effect, being part of the rhythm.
“It all depends on the market rhythm. One got to study the market pattern to determine if price is going to move on.”
Well, you have to know or remember that Phillip Nel used to give a weekly anticipation. Well he certainly used rhythm, trend line and what he study there in order to give his comments on what could be coming for the week. My guess is that he looked at something significant. But what is significant?, my guess he probably included in his study the rhythm!)
"And When price break the MACD zero level, it is also when price has crossed the 21ema. It sometimes continues to move on and when it does so it moves away from 21ema. However, there are times when the market break the zero level on MACD, and it does not last thus, price turn around instead of moving on (forming BOZ). This has happened to me in many of my trades so I ended up being killed."
Well, the final result should be positive. But being aware of the rhythm, the macd, the candles, the divergence, could possibly help out Anticipating what could be coming.
As Phillip Nel mentioned:
From the hart of the system: post 10226
(and also confirming your say :“So can I conclude that not all MACD zero break can be traded”)
“Now look at the MACD at the bottom.
People trading just the MACD are going to get burned there. You HAVE TO KNOW the
Rhythm of the Market”
Well I have to go now, when I’ll have more available time I’ll go on with it. But I still find reading that pdf interesting.
Thank you for your questions,
Have a nice day,
Yvon
