Beads

This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com

There are two are three big parades in Tampa every year. Women normally flash themselves for worthless beads. I wonder what they would do for my beads, much less Richard’s. These aren’t useless by any means.

I mentioned the Elder’s Force Index last week, but when I tried to use it yesterday, the histogram would reset itself to zero unless I refreshed the chart manually. So, I obviously couldn’t trade. However, I noticed that the beads I had set up did trigger in the same place most of the time. Last night I decided to put up a MACD histogram to spot the divergences, and use it along with the two bead indicators for entry and exit.

The 1st signal I had was a short signal pre-market. I didn’t take it, but it was golden. As you can see on this chart, there was a divergence between price and the MACD which alerted me to a possible trade. I marked the MACD buy signal, and the subsequent EFI buy signal. I went long on that candle with a stop below the low of day (the same candle). I exited for a quick 4.50 points. You can either wait on either sell signal to pop up, or take profits at some pre-dertmined level.

When the MACD buy signal, and EFI buy signal both trigger (same for sell setups), it seems like a good precursor to a quick momentum move. Some are larger than others.

Btw, both signals are using weighted moving averages for a faster reaction time. I may make another live trade in the afternoon, but I will probably paper trade in the interim. I still have to make sure that I’m getting the right bead readings with the EFI. It makes no sense to me that they can be right while the EFI indicator itself won’t draw itself correctly in real-time without manually refreshing.

This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com