custom MACD histogram setting?

    Posted by frtaylor on 10th of May 2012 at 02:58 pm

    Matt, what was that MACD setting that you use as a filter along w/ the 25/170/25?  Was it 34/170/34?  To filter out whipsaws.

    frtaylor - there are several

    Posted by matt on 10th of May 2012 at 03:13 pm

    frtaylor - there are several things to watch for, make sure to look at those videos I posted.  

    The whipsaw filter I referred to lately (is also used for any indicator, MA, etc), it involves drawing a horizontal line at the candle low or high, depending if it's a long or a short, and then you must get a confirmation candle above or below that horizontal line to confirm. I showed this with the Histogram several times

    here's two examples of the whipsaw filter using two moving averages.  This method improves all MA crossovers, but it also works for other indicators like MACD Histogram or  or regular MACD, RSI, Stochastic, you name it.  the examples I'm showing are of MA's, but the concept works identical to the histogram going above or below zero, when it does you employ this method. If you do a blog search for whipsaw filter, you should be able to find some old posts from a year ago about this

    otherwise yes I showed examples of using two MACD histograms and the other one was a 34,170,34.

    Right, that's another very useful

    Posted by frtaylor on 10th of May 2012 at 03:19 pm

    Right, that's another very useful one.  I was just looking for that 34/170/34 setting you've lately liked in conjunction w/ the 25/170/25 MACD histogram.  Trying to read the SPX right now, looking for a long or short, short term.  The short term triangle you just posted is the exact thing needed here to use as a trigger, then watch the histograms for confirmation.

    btw, I closed my short based on your triangle.

    good trading!  I also find

    Posted by matt on 10th of May 2012 at 03:25 pm

    good trading!  I also find that the histograms work well on a 1 min SPY to catch some day trades.  

    Otherwise regarding this market, the move off yesterday's lows has not been impulsive, it's been choppy, no 5 waves, so eventually it argues at another pullback; that doesn't mean it can't chop it's way higher first, just saying the move off the lows has not been impulsive.  

    and just to confuse things

    Posted by frtaylor on 10th of May 2012 at 03:12 pm

    and just to confuse things even more, both custom histograms have changed to a sell on the 5 min SPY chart!  I'm short w/ a position on SPY after the lower high this afternoon.

    Never mind, I found your

    Posted by frtaylor on 10th of May 2012 at 03:10 pm

    Never mind, I found your vid on it.  The reason I ask is that both the 25/170/25 and the 34/170/34 on the 30 min chart have crossed to a buy for the SPY.

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