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Registered User
Joined: 3/15/2006
Posts: 27
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hi all, i am new to worden software, and i am a daily trader, what the appropriate setting for macd and stockhastics, and what other indicators can help me ?
thank you
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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The trainers can't give setting, interpretation or investment advice. You may wish to review the following:
Understanding MACD
Understanding Stochastics
I will also move this topic to the Stock and Market Talk forum where other traders are more likely to see it and comment.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Registered User
Joined: 5/23/2005
Posts: 13
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i use: sto 14,8,8 and macd 4,18,8. you can also play with the parameters and observe the results vs your objectives.
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Registered User
Joined: 3/21/2006
Posts: 4,308
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Unggaro, There is a big difference between using indicators for intra-day trading and short term trading. you must more clearly define which you are trying to do. Since you have the Gold as opposed to the platinum service I can only assume that you are refering to short term trading indicators. (unless you use some other Intra-day charting software).
My statements are just my opinions and observations as a successfull short term trader. They are not meant to be taken as facts. It is my opinion that MACD does not respond quickly enough to be used as a reliable short term indicator (It does serve well as a good trend / momentum indicator for other purposses) Fast stochastics for the same reasons are also a bit to slow (But can be used If used propperly).
(IMO) one should rely on volume indicators and chart patterns for short term trading. Here is a link to one thread that I give one example of a short term trading strategy. I have many but this is basic and easy to use.
http://www.worden.com/training/default.aspx?g=posts&t=27412
I hope that you find it usefull.
Goodluck.
Apsll...
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Registered User
Joined: 10/7/2004
Posts: 2,181
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Apsll just beat me to the punch (of course, nothing new there). You are going to need to more clearly define what you are doing. And, not to be unkind but, I fear you need to define it more for yourself than for anyone else.
Are you saying that you watch the markets on a daily basis but trade short-term; or are you saying that you trade intra-day?
My greater concern is that you are trying to do either and do not understand that there are no specific settings for the indicators that you have asked that will get you the answers you seek. Mostly because I do not think you know the questions you are asking.
I pray no offense is taken. I really don't want to see anyone go through what I went through before really learning how to trade. And maybe I'm wrong and you're very savvy but your question sounds like someone just beginning.
So if that's it, if you're just beginning, Welcome! You're in for a lot of fun and rewarding experiences. Just be sure you get advice from some of the very adept traders on this board. Paper trade awhile and be sure you know what you're about and what you want to accomplish.
If you're an experienced trader and I've just made a well-meaning fool of myself...well, that's OK too.
All the best,
tobydad
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Registered User
Joined: 10/7/2004
Posts: 426
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"(IMO) one should rely on volume indicators and chart patterns for short term trading."
Wow Apsll, I am really surprised at this post of yours. And all this time I thought you were an indicator trader. You certainly have came a long way in a short trading career. (IMO) if you want to make money in the markets all you do is look for a few simple repetitive patterns and act on them when they appear. Price action and volume are my favorite indicators, all the rest are good for trend direction or selling books or seminars.
The simpler the better. Remember, you can't forecast the market's next move, and neither can anyone else. Simple trading rules make for clear-cut and effective decisions (while most other participants are still trying to compute and weigh the implications of dozens of factors and indicators - and generally wallowing in a state of catatonic confusion, particularly if the market is not going their way - you will have acted, and will be calmly observing and waiting for a new signal).
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Registered User
Joined: 3/21/2006
Posts: 4,308
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Thanks for that Booker, I am evolving, Remember I was studying and learning Technical Analysis before I decided to start actively trading. It was the Great Bull market of the 90's that actually lit the flame of my interest in the stock market. My first great read was a book by Ted Worren that was based purely on Technical Analysis.
Is 10 years of studying and 7 years of trading a short career? If so then I guess that I am a quick study. And I am an indicator trader, but have always believed in chart pattern recognition first. I use some indicators (Volume) to give me an early warning that there is growing interest, I then look at what the pattern is telling me. I then decide what the market conditions are and how best to trade them. For short term trading then I rely on chart patterns and Volume indicators. When the Stock Market is trending (UP) then I will start to use moving averages and trend / momentum indicators for intermediat term trading.
Do you trade short term bounces or are you sitting on the sidlines right now? I have already asked you to participate more often because I would like to bounce some ideas off you and mutually help each other to un-cover some good trading oppertunities, but I am sure that you are busy with other aspect of your life.
Always good to hear from you.
Apsll..
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Registered User
Joined: 4/18/2005
Posts: 4,090
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I suspect that I'm not as sucessful as APSLL... but I win more than I loose. Right now MacD may not be the best indicator to be using. Every indicator has periods where they don't perform to their fullest. Choppy markets tend to level the playing field IMO.
However when markets are trending it can be useful. I don't find that MacD gives a "buy signal" so much as confirms an "Ok to buy zone"... you could anticipate a signal... but the tighter you make it the more false signals.
I am a short term trader and this is wht I use.
12,26,9 plotted both as line indicator and as a histogram... You'll see things in one that aren't obvious in the other often.
buy zones are when the histogram begins to track high bars from a low swing up to the crossover and slightly beyond. Sells are the opposite. I also tend to look for divergences.
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Registered User
Joined: 10/7/2004
Posts: 426
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Apsll, I was being facetious when I said “indicator trader”. I was just surprised by your wording that reads like my way of trading. I use indicators and fundamentals to scan for a list quite often. I especially like Winning Stock Selection Simplified II by Peter Worden for bringing the cream of the crop to the surface. I then pick my trades by price pattern and volume.
We both know that two people can read the same trading book and get different perceptions. One will prosper from the true understanding, while the other will search cover to cover for the secret indicator and Holy Grail.
You fit the first person and read the charts very well. I didn’t know you had ten years of study to go with your trading years so I take my compliment back. Just kidding.
I have a dear friend that fits the second type and constantly asks me for advice. No matter how many times I show him the price patterns, he will ignore them and trade purely on a moving average and more times than not will be on the wrong side of the market. No matter how many times I explain the mathematics behind risk control to prevent blowing up his account, he will bet the farm on one stock 'cause it should make more money than all the others combined and hates to sell a loser 'cause it always comes back.
I haven't been trading very much in this down turn, except for a few Ultra short ETF’s. I like to trade in the market direction and don’t have the interest to put the effort into uncovering the gems like you have been doing.
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Registered User
Joined: 3/21/2006
Posts: 4,308
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I hear you on the second person type, I mentor by E-Mail and some by phone. (some from the platinum members, and a couple that used to post hear) and others. But some of them just do not get it and never will. If everyone got it, then the Markets would cease to function.
By the way just so we are clear the 10 years of study includes the 7 years of trading for a total of 10 years. Before that time my retirement fund was 100% professionally managed. A portion of it still is.
Because my job allows me the time to spend on the Markets, I rather enjoy the effort it takes to uncover the gems. The Stock Markets, Football and Chess are my hobbies. I do make some money from betting on football but zero on Chess.
Again please stay in touch, I rather enjoy our dialog..
Apsll.
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