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JimbertGuest
Started looking at ITMB (Bear) trading and was wondering what MACD to use as a trading trigger. Do I use the daily closing MACD or do I look at it continuously during the day? Today, I see that the QQQ MACD was -5.9 at yesterday’s closing, but reached about +1.7 earlier and is now about +0.6. This thing changes FAST!
I’m trying out “Paper Trading” on E-Trade today to get some experience with options so that I can reapply for level 2 trading there. They recently only approved me for level 1, so I wanted to be able to say I was an experienced options trader. Level one doesn’t allow long calls/puts. Not sure why – I thought they were the most basic and least dangerous options to trade. I guess covered ones are considered safer.
TommyGuestLooking everyday during the day is like sitting in front of a slot machine and continuously putting money in that you will lose. I try to catch the opening and the close but it might be best to check the close, after or before the open especially if you have a job.
I misunderstood your question on MACD. Generally for me the best settings on MACD are 8,17,9 but there are alot of variations.TommyGuestI could not do this even if I knew how hew did it. See https://seekingalpha.com/article/4773347-primed-for-a-bear-market-rally#scroll_comments
JimbertGuest8, 17, 9??? Heather’s book recommends 12, 26, 9, doesn’t it? Why do you recommend different when as far as I know you have not backtested them as Heather did? Or have you?
And thank you for your answer on monitoring MACD. I suspected that closing values were the ones to use. I like your slot machine analogy. Hahaha.
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