Zero is the prime support and resistance level.ionone wrote: Mon Jul 26, 2021 5:41 pm hey
I understand the first entry and exit (MACD cross above second level, then exit when MACD gets under signal line)
but the other reentries I quite don't get it. Could you explain more clearly ?
once I understand fully i'll make an indicator that backtests this strategy and gives profit and DD levels
thanks for sharing
+5 and -5 being the second support and resistance level.
+8 and -8 being the third support and resistance level.
Entries are restricted to when the MACD has gone beyond two levels, +8 or -8, +5 or -5 and the level of zero
When one level is crossed a first ‘signal’ is created – there can be no entries unless two levels have been crossed:
Levels of +8 or -8 have been crossed followed by cross of +5 or -5 OR
Levels of +5 or -5 have been crossed followed by zero cross.
When two signals are received the entry is created with the stop being the value of the chart at the time the MACD has recrossed that level. Very LRT (Low Risk Trade).
If and when the MACD crosses zero or another level a further support or resistance is created and the stop is moved to that value.
I have updated the same chart (Dax 15m) to illustrate the next entry – a small loss if the stop can be accepted so close to the entry value. I have shown the entry (yellow line) which was the stop.
There MUST be a delay in entry until the accurate stop can be achieved.
Does this help?
JUST AS I WAS ABOUT TO SEND THIS POST I SAW ANOTHER BUY TRADE ENTRY CREATED ON THE DAX 15m AND HAVE ATTACHED A FURTHER ILLUSTRATION AS IT IS LIVE.