Hello Vimal- I apologize I missed

    Sugar 9EMA

    Posted by matt on 24th of Jul 2013 at 10:17 am

    Hello Vimal- I apologize I missed your post yesterday regarding sugar and the confirmation method. The first thing however is that I don't see a confirming buy signal over the 9 EMA because price closed above the 9 EMA on the 18th and none of the subsequent candles have been able to take out that candle's wick high, hence no confirmed buy.

    In regards to the confirmation method - as I stated before while it improves the trending capability of any indicator such as a simple moving average (not just the 9 but you could use the 20 or any MA), or MACD crosses look for a confirmed cross with price, or Stochastics above/below 50% etc.  However I think the real piece of the puzzle lies in use these as tools with other things, but not alone - you won't one indicator even if you use the confirmation method that is consistently profitable.   You have to use a combination of things together such as trendlines, patterns, elliot wave, price action.  Try also using multiple confirmation indicators together, I like the MACD cross confirmed method in combo with trendline breaks and the RSI 50% confirmation level to hold trades for longer - but that's hard to discuss here without a bunch of examples.  I think a combination of them working together with some rules can provide good results, I have been working on some ideas and I will eventually post examples when I have something.

Newsletter

Subscribe to our email list for regular free market updates
as well as a chance to get coupons!