Thread: 1) Do you have a question on MACD?

Hey

whats the best set up for macd scalping? and why?

Originally Posted by Stycky

Hey

whats the best set up for macd scalping? and why?

Stycky,

Welcome to the forum. In regards to MACD , I personally use the standard 12, 26, 9 setting. It is a great default and can be used for a variety of time frames and types of analysis. Changing the settings will either speed up or slow down your signals based on the averages you choose . Which one is best ? Ultimately, I would say it is the setting that you are comfortable and preferably making money with ~

tnx,

can you send me settings of other scalpers in fxcm group, for (5) example what they use, to try it on demo.

i'm sorry for my bad english.

Originally Posted by Stycky

tnx,

can you send me settings of other scalpers in fxcm group, for (5) example what they use, to try it on demo.

i'm sorry for my bad english.

I would start with the defaulted settings before moving on to anything else. Let me know how that works for you.

i don't use macd, i'm trade with ssd but it have one bad mistake it didn't have histogram. this is reason why im looking for good setup for scalping

Originally Posted by Stycky

i don't use macd, i'm trade with ssd but it have one bad mistake it didn't have histogram. this is reason why im looking for good setup for scalping

Hello Stycky -

we actually have a couple of different scalping strategies that we teach in the DailyFX PLUS Live Classroom.

My personal scalping strategy is outlined in this article:

Short-Term Momentum Scalping in the Forex Market

Walker is also a scalper, and he walks traders through his 'Lon-NY' day trading strategy. We don't have an article for that one yet, but have this on the slate to be published next week.

In the meantime, you are more than welcome to join us inside of DailyFX PLUS for the Archived Webinars to see either of our Scalping Strategies. My webinars around scalping are entitled 'Finger-Trap,' and Walker's are entitled 'Scalping with Walker.'

Live Classroom

This is free and available for all Live account holders of FXCM.

Enjoy!

hi, i would like to ask is this considered a negative divergence? because from what i can see is the price moved to a higher high but both the stochastic and MACD moved to a lower high. thanks.

Yes - the new high price with that MACD reading would have qualified as negative divergence.

My MACD indicator has the fast/slow EMA's indicated by a red line and the histogram, but no signal line.

Originally Posted by LPM

My MACD indicator has the fast/slow EMA's indicated by a red line and the histogram, but no signal line.

LPM,

Great question! It looks like you are using MT4 for your trading and charting. The default MACD program for MT4 actually uses the histogram as a signal line. If you are tading MACD crossovers you would wait for the histogram and MACD line to overlap.

So I understand how negative and positive divergence work but at the same time im not. I don't know how to ask this without showing it, so ill give an example:

-Ex: -Downtrend Market: market is going down but MACD makes a new higher high, but lower low.
-Uptrend Market: market is going up but MACD makes a new lower high, but higher low.

So my question is which should we pay attention too? The highs or the lows that the MACD makes?

- Im really confused with this so PLEASE HELP!!

thank you to everyone who responds

There are actually two types of divergence, hidden and traditional. Hidden divergence is designed to find pull backs in a trend, while traditional divergence is used to spot potential market reversals. Depending on what type of divergence you are looking for and the direction of the trend will determine if you should be viewing prices highs or lows. For full details and trading examples check ouit my full length video on divergence here.

THANK YOU SO MUCHHH! That was even better information than I wanted. But I have to questions about stuff you mentioned that I'm a little confused on -

1 . You mentioned triple tops, lately I've been confused about that topic (including Double Tops). My question is, If there is a Double Top or Bottom, do the tops or bottoms have to hit the same exact point. What I mean is if there are two tops, do they both have to exactly hit 1.29814 (example) to be called a double top? Or can it be in it's range?

2. I like to use 3 oscillators, but I mostly use 2 of them (MACD & RSI). If for example the Euro is on an uptrend, but the RSI made a bullish reversal. But the MACD is still making higher highs. What would I do? Which oscillator would I have to trust?

Sorry for so many questions, but I really appreciate it, again THANK YOU SO MUCH for all the help you are giving me.

We welcome and appreciate the questions. If you are learning then we hope it is assisting you in reaching your trading goals.

Regarding your questions:

1. What we're focusing on with double / triple tops (bottoms) is three points of exhaustive buying (or selling) that doesn't result in a newer high. They DO NOT have to be the exact same price. The range is fine. This can be used along with other tools like Candlestick Analysis to get great entries on a reversal.



2. What settings are you using for your RSI & MACD settings? That can make a difference in what you're seeing and I want to ensure we give you proper answers. If default settings are showing divergence of Indicators, I'd recommend you step aside and let price action tell you what's going on through either higher highs or lower lows. Also, just like a lawyer, find out which side has the most evidence and see if it aligns with what you believe will happen.



Tyler Yell, Trading Instructor

Originally Posted by PaolaC92

THANK YOU SO MUCHHH! That was even better information than I wanted. But I have to questions about stuff you mentioned that I'm a little confused on -

1 . You mentioned triple tops, lately I've been confused about that topic (including Double Tops). My question is, If there is a Double Top or Bottom, do the tops or bottoms have to hit the same exact point. What I mean is if there are two tops, do they both have to exactly hit 1.29814 (example) to be called a double top? Or can it be in it's range?

2. Itend, but the RSI made a bullish reversal. But the MACD is still making higher highs. What would I do? Which oscillator would I have to trust?

Sorry for so many questions, but I really appreciate it, again THANK YOU SO MUCH for all the help you are giving me.

Tyler thank you so much. I'm sorry I ask so many questions but everyday I learn about something knew with your guys answers. But I have 2 pending questions -

1. Couldn't that potential triple bottom also be a double top? Also, we are in an overall downtrend would the double top make sense? How do we know it's going to break that trend?

( 1 is all one question because I thought they were all alike)

2. How do you know where to place those channels and the range?


Again sorry for being such a bother, but like i said im always learning about something new. So anyways THANK YOU for all the answers and constant support!