Lifesong
02-19-2009, 12:26 AM
Hi Neal (& other traders trading with TRSI)
As far as I recall you do not normally consider MACD when trading and that you generally follow signals from the TRSI indicator only. My question revolves around how you notice divergence or do you discard it completely when trading?
What I noticed is that on the hourly GbpJpy chart around 06:00 GMT, the TRSI crossed down steeply and MACD with standard settings showed negative divergence around 133.30. The concern with the current setup is that the 4h & daily TRSI is still up and this is what really interests me.
Looking at the attached hourly chart I notice similar setups and would like to comment and question the following:
1) Similar setup occurred on Feb 9th on hourly chart
2) After initial MACD divergence confirmation & TRSI cross down, price went sideways for a few bars before the major slide from say 136 level to 134.5 level
3) The enticing issue with current hourly setup is that price is also forming a possible double top
4)Obviously the risk with the current setup is that the 4h TRSI still up and this could be deemed as a countertrend trade or how would you suggest trading it?
5) In your experience is it worthwhile looking at MACD divergence or has the TRSI proofed itself as a more reliable indicator?
6) Lastly what trading startegy would be effective with similar setups - breakout strategy?
I am looking forward to hear from you.
As far as I recall you do not normally consider MACD when trading and that you generally follow signals from the TRSI indicator only. My question revolves around how you notice divergence or do you discard it completely when trading?
What I noticed is that on the hourly GbpJpy chart around 06:00 GMT, the TRSI crossed down steeply and MACD with standard settings showed negative divergence around 133.30. The concern with the current setup is that the 4h & daily TRSI is still up and this is what really interests me.
Looking at the attached hourly chart I notice similar setups and would like to comment and question the following:
1) Similar setup occurred on Feb 9th on hourly chart
2) After initial MACD divergence confirmation & TRSI cross down, price went sideways for a few bars before the major slide from say 136 level to 134.5 level
3) The enticing issue with current hourly setup is that price is also forming a possible double top
4)Obviously the risk with the current setup is that the 4h TRSI still up and this could be deemed as a countertrend trade or how would you suggest trading it?
5) In your experience is it worthwhile looking at MACD divergence or has the TRSI proofed itself as a more reliable indicator?
6) Lastly what trading startegy would be effective with similar setups - breakout strategy?
I am looking forward to hear from you.