Collective thread of my cliff-notes & highlights for #StudySaturdays
I’ll be pinning them in this thread as I complete books/information.
We're all gonna make it, brah. Collectively.
Like & share if these helped.
I’ll be pinning them in this thread as I complete books/information.
We're all gonna make it, brah. Collectively.
Like & share if these helped.
I will begin adding #TATips to this thread to make it easier to sort through my page for helpful info.
#TATIP
How to follow momentum using the MACD. This is a cool concept that I've used to catch monster moves. This is especially helpful if you missed a major move and you're looking to get on-board with confidence.
1) Concept
2) Use
3) Examples
4) Nuances
How to follow momentum using the MACD. This is a cool concept that I've used to catch monster moves. This is especially helpful if you missed a major move and you're looking to get on-board with confidence.
1) Concept
2) Use
3) Examples
4) Nuances
Concept:
The MACD is an indicator that tracks momentum. Whenever it creates a 'significant' high/low, we can assume that this was caused by strong impulsive move. When significant highs/lows are created, we can assume that the next impulse leg will be at least equal or greater.
The MACD is an indicator that tracks momentum. Whenever it creates a 'significant' high/low, we can assume that this was caused by strong impulsive move. When significant highs/lows are created, we can assume that the next impulse leg will be at least equal or greater.
Use:
After spotting a new significant high/low being formed, traders can enter pull-backs with confidence knowing that you are following a move with strong momentum (as shown by the MACD lines). Traders may also increase risk depending on their risk tolerance.
After spotting a new significant high/low being formed, traders can enter pull-backs with confidence knowing that you are following a move with strong momentum (as shown by the MACD lines). Traders may also increase risk depending on their risk tolerance.
Example: $BTC
I've found that the 4H works best for $BTC.
In this time span of ~three months, we saw the MACD create a significant high or low, three times.
Afterwards, we see strong continuation in the direct of the previous impulsive move.
Recently, a new low has formed.
I've found that the 4H works best for $BTC.
In this time span of ~three months, we saw the MACD create a significant high or low, three times.
Afterwards, we see strong continuation in the direct of the previous impulsive move.
Recently, a new low has formed.
Example: $BTC
These aren't significant new highs. How can we tell? Simply look at past data (old highs), these highs don't even come close to previous highs.
These aren't significant new highs. How can we tell? Simply look at past data (old highs), these highs don't even come close to previous highs.
Nuances:
Be careful when the MACD creates an abnormal reading from an inexplicable move.
In this example, $SRPT registered a significant new high after a strong impulsive move upwards.
However, this move was unhealthy and resulted in a blow off top.
AVOID abnormalities.
Be careful when the MACD creates an abnormal reading from an inexplicable move.
In this example, $SRPT registered a significant new high after a strong impulsive move upwards.
However, this move was unhealthy and resulted in a blow off top.
AVOID abnormalities.
