slowkey wrote:nt indicator and macd.gif
I know how much everybody is interested in learning how to trade this indicator so I thought I would share this from my thread.
GBPJPY Hourly Chart
The NT indicator in True TMA mode and being traded that way by me. So I am not using this indicator as Bob did in his wonderful NB10.2 system. My setup is for analysis and needs to be in this mode. So I am using a ATR of 40 and a Period of 12 presently.
I turned off the true TMA line for clarity. I think from looking at the True TMA line I get some confirmation on what I thought is happening with the Diff. That the Diff is doing a good job of showing the effect of flows from different EUR cross pairs for instance making it a little more accurate of current conditions to trade with.
None of these examples were made here as a result of an analysis based on my setup. They are only shown as examples of how we might be able to interpret and use Price, MACD and the NT indicator for entry and exits. Saying that though the 3rd example would fit within the scope of how I use the setup.
Above is an example of 3 possible trades just taking clues from MACD, NT indicator and Price. In the first down trend trade that is illustrated we have the MACD rather flat. MACD will do this a lot having reset to the base line or water line if you will. This trade starts to develop very subtlety but I think if you compare price, MACD and the NT indicator you get a good entry. MACD and the NT indicator work very well to confirm each other with there crosses down. Alone it would not be so clear. I am working to try to get a read on what is over sold and over bought on the NT indicator but you can see MACD again confirms with a cross up the exit. There is plenty of information with the Bull Candle if your familiar with candles to confirm exit. It is my hope we can find a level number that signals over bought and oversold conditions on the NT indicator.
Now the second area is a real subtle zone of entry. The clues start to mount that a entry is forming. We see a cross on the NT indicator and some separation but not dramatic. MACD has been flat but the MACD line and the signal line cross down over the water line. I would not want to trade this based just on MACD but I think there is enough here when looking at the two indicators to make an entry. Exit again seem to be a mildly oversold area on the NT indicator which would make sense with a pair in a slight uptrend. The MACD cross is confirmation if we had any doubts but I would be out before than.
The third Entry and Exit are more than clear. They fit well into my setup and normal analysis. I would suspect these kind of entries to be a lot a like when there is a cross into the prevailing trend. The exit I would not be to worried about. Moves into the trend I want to milk but I think it is clear when MACD is overbought that the NT indicator Diff and Cross are already Diverging back to the Zero line. You could hang in there to an apparent cross though.
Just an Edit ... The third trade I would have been out of Friday Afternoon. What you are seeing is an Oanda Chart and Oanda trades 24-7. But after 4 on Friday Spreads are huge. So that would have been 2 or 3 candles back.
