MACD divergence on 28 November

[initialsBB]

Is anyone on this forum using MACD divergence as trading strategy on 30M or 1H ?
On 28 November everyone predicted that USD would rise and EURUSD fall, but there was very apparent MACD divergence on 1H chart of EURUSD, and after that it rose for more than 200 pips. Many lost money on this day. What do you do when predictions from institutions such as UBS or Dresdner Bank contradicts what you see on the charts?

[Trader01]

Originally Posted by initialsBB

Is anyone on this forum using MACD divergence as trading strategy on 30M or 1H ?
On 28 November everyone predicted that USD would rise and EURUSD fall, but there was very apparent MACD divergence on 1H chart of EURUSD, and after that it rose for more than 200 pips. Many lost money on this day. What do you do when predictions from institutions such as UBS or Dresdner Bank contradicts what you see on the charts?

The chart is King, fundamental analysis is his queen, but she ain't the boss; not by along shot; CNBC is the irritating mosquito buzzing around you, UBS and Dresdner are high-paid financial terrorists determined to derail the best thought-out plans, but they all pale in comparison to Easy Al.

I only watch their footprints and step over, ever so circumspectly, their droppings!

[socrates]

Trader01 I do not want to start an argument, but for sure funamentals are king with chart his queen
Banks, reserve banks and institutions, the main market movers, do not look at the charts and say "ooh, lookey here, the MA (or whatever other indicator) has crossed, let's go long"

initialsBB, sorry for intruding on your thread.
MACD divergence can be a good indication of a potential change in direction. Do not look at it alone, but when you see a "good thing" and the macd divergence is present, then that helps to strengthen your beliefs.

Predictions from banks should be viewed as any other predictions. IE. just that they are the view of the particular bank concerned, nothing more, nothing less. So when their predictions contradict your views, re-check your views and if you still believe your views, then go with them. Remember that you alone are king of your system (strategy)

[initialsBB]

Originally Posted by socrates

Trader01 I do not want to start an argument, but for sure funamentals are king with chart his queen
Banks, reserve banks and institutions, the main market movers, do not look at the charts and say "ooh, lookey here, the MA (or whatever other indicator) has crossed, let's go long"

You are right about this, but when it comes to retail forex trading, sometimes MACD and MAs prove to be more accurate than analysis from the market makers.

[Trader01]

Originally Posted by socrates

Trader01 I do not want to start an argument, but for sure funamentals are king with chart his queen
Banks, reserve banks and institutions, the main market movers, do not look at the charts and say "ooh, lookey here, the MA (or whatever other indicator) has crossed, let's go long"

QED!

You have inadvertently stumbled on the fact why TA works. If the Banks start looking at TA I will switch to Fundamental Anal-ysis.

No problem with disagreement, socrates. The market humbles us all.

Regards to you

[socrates]

Originally Posted by Trader01

QED!

You have inadvertently stumbled on the fact why TA works. If the Banks start looking at TA I will switch to Fundamental Anal-ysis.

No problem with disagreement, socrates. The market humbles us all.

Regards to you

LOL, I like the way you put that, anal-ysis, good one!!

[SoundFX]

I gotta chime in here. Analysis from just about anyone in any market is about useless to the average trader. In my humble opinion, there is NO greater indicator than MACD divergence. To ignore it is foolish. This all, of course, depends on your time frame and style. Perhaps I'm trading MACD divergence on the 10 minute time frame to go long, and you are holding short based on 30 minute analysis. Point is, don't ever listen to anyone.


-SFX

[Trader01]

Its 8:47 ET right now and Eur/Usd is dropping like a stone.


Listen to the crap they are saying now.

Then go back to your chart and see the real story; the only one that counts.

As a further experiment find the best fundamental analyst and get him to time a call.

Finding a fundo who can make a decent timing call is like finding a one-legged winner in a butt-kicking contest.