Bresserts / MACD - Market Analysis for Sep 11th, 2019
By
Ryan Wilday
If you've known me a while, you know that when I have a standard impulse, I use no indicators to trade. They are not needed as the market or coin in question simply moves through fibs in lock step. When you have corrective chop or diagonals, you have a different matter. Not long ago I developed some technical approaches using Bresserts, and MACD, both on candle chart, and renko charts. I've been adapting my approach quite a bit. This all started as I wanted to move from a big swing trader to someone can make regular income trading. I have really seen my goal achieved this year, but I still see improvement. One method I've settled on is using Bresserts / MACD in the following process.
1. Watch three timeframes. For Bitcoin it is 2H, 15m, and 5m. Look for distortions between them. You can sometimes use those misalignments to have a primary and secondary trade in opposite directions, or wait for them to align.
2. Watch the MACD behavior next to Bresserts. Bresserts overbought can be both a sign of upward acceleration or a great entry for a short. (and vice versa for Bresserts oversold). How do you tell the difference? Look at MACD. Is MACD higher than were it was at the last overboght signal? More than likely you have a move up coming. But if MACD is weak, you may have a short entry. I like to wait for MACD to pull into a cross in alignment before entering. That is laggy, so in some regards it is safe, but it is late.
3. Look at moving averages for clarity on the state of trend. I use the 25/50. They are not support for me. They just are a visual aid. Are they weaving back and forth with each other? That's chop. Are they moving in one direction together? That is trend. Taking the Bresserts / MACD combo with trend will always be better.
I've posted an example of solid short signals with Bresserts MACD. Note the first had the averages in chop, but as price went along, and weakened, they indicated a downturn.
Generally trading diagonals and corrective chop is bad for your health. However, I have to make a regular income trading, so have had to tackle this. And, unfortunately markets can extended time in chop.
