Trend definition using other indicators

[NHN123]

Hi all,

Back to the old question of trend....

Has anyone used MACD (12,26,9) to define trend?

I thought to use it like you would the MA, i.e. by switching to a higher time frame (for daily, use weekly as trend filter). If the MACD < signal then trend is down, MACD > signal, trend is up.

Really simple, someone has probably tried this already, so would be interested to know other peoples experiences

Many thanks indeed
Nick

[stylist]

You can use any filter that you like the macd ,ma or the new stf indicator everything that will make you feal confidence to pull the triger
I personally dont like these indicators but i can tell you that after i read Chris Eddison post on the trin i started using it on my other system (im new with the software) and it reduced my number of trades by allmost 50% and increased my total profit before commissions by 12% .sometimes less is realy more
I believe that it also works great with the software but i dont have enough experience with it yet
All i can say is thank you Chris Eddison for sharing your experience with the trin

[NHN123]

You can use any filter that you like the macd ,ma or the new stf indicator everything that will make you feal confidence to pull the triger
I personally dont like these indicators but i can tell you that after i read Chris Eddison post on the trin i started using it on my other system (im new with the software) and it reduced my number of trades by allmost 50% and increased my total profit before commissions by 12%
I believe that it also works great with the software but i dont have enough experience with it yet
All i can say is thank you Chris Eddison for sharing your experience with the trin
Thanks.

Would you mind telling me where that thread by Chris was (I have been on hols) please.

Thanks very much for your reply. That's what I want to do, reduce the amount of trades and increase profits....

[stylist]

Here is the link
http://www.mtptrader.com/showthread.php?t=318&highlight=TRIN

[Rimu]

Hi Nick.
The way I have been filtering for trend and entries is by using diversion on a 14 period CCI peak over +150 and the highs of the corresponding price bars, and inversely of course the same using troughs below -150 and the corresponding price bar lows. If I get diversion there and also have a grouping of Fib price zones, time zones, and of course a valid (in my opinion :D ) wave pattern combined with a 10, 21, 1 MACD line peaking or troughing over/under +.001/-.001 on the hourly chart I look for a valid reversal bar type entry. For added assurance a glance at the daily with a similar MACD setup shows the trend direction. Has served me well so far, using this method on 6 FX pairs over 3 time periods it took me 132 trading days to get 100 completed trades, although admittedly I look at all possible setups ( including less than ideal abc setups so long as they meet one of the 10 basic Gartley patterns) on all impulsive waves.
On the attached chart ( waves etc manually calculated ) the intermediate pattern failed at 2x or c due to an incorrect abc, I took an intermedite leg3 short trade and also a major (brown) leg3 trade at 2 or c or 2, the intermedite trade is completed and the major trade still open, also the intermedite pattern voided again at 4x as it overlapped wave1.
I have seen some traders using for instance a 5, 20, 30 MACD and being successfull, I guess it all depends on understanding the Indicator you choose to use and understanding its parameters and therefore the way you apply it.
Note.... the above suits my trading methods and more importantly my trading phsycology , also it was tested paper trading for 12 months before I ventured into the real market with it.
Cheers....SteveH

[Rimu]

The same on the daily, the MACD limits at +.01 and -.01 on this one. Am in long Wave 1 trade (not looking too good at the moment :( ). A warning thiugh....This is the first trade that qualified under my trading plan on the daily on this pair for 18 months!!!
Cheers ...SteveH

[Rimu]

Ooops, just realised that I called the above post a long trade.. sorry about that. :o