Thanks for this chart. Time ago I also saw that the 4hr chart is really interesting to trade using MACD crossing, but there is still a thing that it is not clear to me: how do you decide what is a good signal and what is a fake indication to be ignored? The first 5 sell and 4 buy signals are very clear, but beginning from here things get fuzzy:
1. Why do you ignore the sell signal of 2012-12-21? "Low power" signal?
2. Why do you ignore again the 2012-12-27 sell signal?
TheChasm
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This is a great question I have been working on too... I'd like to talk about it with you more, but long story short: There has been some established floors and ceilings with this huge movement from 200 to 1200 over the last 2 months. I am looking for MACD and RSI to confirm price ceilings and floors along with volume to indicate whether we will break through these levels or bounce of them...
I ignored those signals because the macd was spiraling (there wasn't a strong angle of attack on a crossover) along with no RSI signals and no clear support or resistance levels. We finally reached a resistance level at 1050 area and my RSI and MACD along with low volume indicated this resistance would not be broken and a reversal was in store.
TheChasm
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Also the first 4 buy and sell signals were 20-20 heinsight and were perfect with the high volatility. This is what has led me to this chart. Going forward I will be picking my points carefully and we will have to see if my predictions will come true.
TheChasm
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I began using this chart 20 days ago and have only made 1 Forward looking prediction which was spot on. So I am continuing to use this chart. Here is the link: tradingview.com/v/eb106lxd
Kilgore
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Great explanations TheCHasm, thanks for sharing them. I find very useful to use RSI (in any time scale not smaller than 15min) to find tendency channels: when the RSI trend is broken and it is combined with a MACD crossing, for me it is an interesting signal to take into account. If the MACD intersection is with a relative large angle of attack, then the signal is strong. Unfortunatelly I cannot trade during the day, just to have a short look in the evenings, so strategies at the 2hr and 4hr chart are of special interest.
Thanks and please, don't give up sharing these interesting ideas :) !
1. Why do you ignore the sell signal of 2012-12-21? "Low power" signal?
2. Why do you ignore again the 2012-12-27 sell signal?