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TFC Commodity Trading Forum

Re: Trades/Emini/Crude Ratio/Silverbear

The MACD Histogram is good for showing divergences short term and I do check it when close to a trade. Sometimes I just leave it on for that. Most especially with intraday charts like the 60 minute and 15 minute charts. When there is an obvious divergence in the Modified Histogram with price at support or resistance it is always a good bet to take. But even Daily charts works ok most of the time but not always. It doesn't work as 'consistently' as the RSI 21 divergences though with price at support or resistance. Don't know why and it does concern me using it. But the Modified MACD lines track the price trend exceptionally well most of the time. If all I ever did was stay on the positive or negative side of the Modified MACD lines with most any market I'd catch the trend everytime without most whipsaws other than markets that trade sideways for long periods of time. No moving average indicator works well in sideways markets. I was surprised to see the Modified MACD next to the Stockchart's $BPGDM which is the bullish percent Gold miners Index with point and figure charts. They tracked like peas in a pod. I was amazed how well it did this which gave me a lot more faith in the Modified MACD as I do respect point and figure charts but don't use them. So I guess I'd have to say the Modified MACD and the 20ema and for a 3rd choice the 50ema to see the 20/50 relationship which I consider key. If I had to only pick two I'd say the 20ema and 50ema as everything revolves around them. That relationship and direction in both tell the tale well. I suspect the stock market will sell off from here with the way not only precious metal stocks sold off today with a strong Gold price. But also see the Ag stocks selloff to their lows as well. In fact most everything I checked that I was pissed off I'd missed seem to come right back again so I didn't feel so bad. I haven't been trading much with the extreme volatility lately other than the DUG & DIG trade the other day. Sure would like to see a nice MAJOR move get started rather than all this chop chop market. Might as well trade the Emini without all the other details to consider.