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what's your MACD setting? i can only see that you have (12, 26,9), but what are the values of other settings? i've seen people changed them, but i don't know what setting works... hopefully, i can learn from the correct setting. thx!
ADX is a directionless indicator so I'm confused about your assumption that low volatility is only a precursor to a move down, Even though it could actually be a volatile swing to the upside that resolves the low ADX condition. I'm guessing this is a function of the type of markets you trade. if it's stairs up elevator down type of market then that makes sense. but for things that can have volatile upside move such as tech stocks, this may not be as applicable?
It is the MACD signal! It is possible that these low ADX signals resolve to the downside and that is why we wait for a trigger on the lower timeframe. However, the MACD signal above zero line means the probability is that this resolves to the upside.
So, this is not something I would back test. We are using the higher timeframe as a condition and then looking for a trade on the lower timeframe. I don’t use this as a standalone strategy. Not to mention, I’m looking at other indicators such as ADX to confirm optimal timing.
Another great lesson from Joe Rabil! Thank you! Mr. Rabil, can you say the opposite configuration is valid for a downtrend: lower price bottom, in combination with higher MACD and higher ADX?
The opposite configuration for downside will still have low ADX. However, the MACD will be making a higher high under the zero-line while price makes a lower high.
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Thank you
classic vid will save this bad boy
Thanks!
what's your MACD setting?
i can only see that you have (12, 26,9), but what are the values of other settings?
i've seen people changed them, but i don't know what setting works...
hopefully, i can learn from the correct setting. thx!
I use the original settings 12,26, 9 that Gerald Appel created. I have never tried anything else because these settings work great for my strategies.
ADX is a directionless indicator so I'm confused about your assumption that low volatility is only a precursor to a move down, Even though it could actually be a volatile swing to the upside that resolves the low ADX condition. I'm guessing this is a function of the type of markets you trade. if it's stairs up elevator down type of market then that makes sense. but for things that can have volatile upside move such as tech stocks, this may not be as applicable?
It is the MACD signal! It is possible that these low ADX signals resolve to the downside and that is why we wait for a trigger on the lower timeframe. However, the MACD signal above zero line means the probability is that this resolves to the upside.
You could make a scan for your macd reverse divergence, not it would make life easy
You are correct. It can be done but it would take a little work.
Joe - have you backtested it?
4 hours, from the time I posted this and no response, so that's a No!😂
@@ninjazzrhythm400comments are not monitored 😊
So, this is not something I would back test. We are using the higher timeframe as a condition and then looking for a trade on the lower timeframe. I don’t use this as a standalone strategy. Not to mention, I’m looking at other indicators such as ADX to confirm optimal timing.
@@ninjazzrhythm400I often get questions that come in overnight so I wait until morning and answer them all together.
Fantastic stuff! The reverse divergence near the zero line, powerful signal in technical analysis!
Thanks! Yes, good signal for sure.
Another great lesson from Joe Rabil! Thank you! Mr. Rabil, can you say the opposite configuration is valid for a downtrend: lower price bottom, in combination with higher MACD and higher ADX?
The opposite configuration for downside will still have low ADX. However, the MACD will be making a higher high under the zero-line while price makes a lower high.
@@investlikeapro7977 Thank you for the clarification, Mr. Rabil!