Trigger Finger for additional trading opportunities when the Hopper is done.

Some things you need to know, some things dont matter, but heres The MACD Story:

Myths and Facts:

Myth: MACD indicates tops and bottoms. When MACD lines are at the furthest point away from zero, the instrument is overbought/oversold. FACT: MACD indicates trend by calculating changes in momentum and direction. There is no such thing as the furthest point away. Zero is the only defined line. Above and below zero there are no bounds. Myth: MACD is just two EMAs crossing. FACT: The MACD is comprised of 3 EMAS, but not the way you might think. 1. MACD is comprised of 3 EMAs, but only two of them are EMAs of price; and neither of those is visible in the indicator displayed on your screen. The 12 and the 26 EMAs are hidden, working in the background feeding data to the MACD indicator. 2. The MACD Line itself is the difference between the two hidden EMAs (the 12 and the 26) plotted as a solid line. The MACD Line itself is not an EMA. 3. The Signal Line is an EMA of the MACD Line. Imagine taking an EMA from a number that is the difference between two other EMAs! Myth: The histogram is the difference between the fast and the slow EMAs. FACT: The histogram is a powerful visual representation of the difference between the MACD Line and the Signal Line. The histogram is not necessary if you have the MACD Line and the Signal Line both showing, but it adds a great deal to our ability to interpret MACDs valuable information. FACT: The MACD is an indicator performing a multi-level computation of historical data and it gives a unique angle on price action. FACT: MACD stands for Moving Average Convergence Divergence. Think of 2 lines getting closer together (convergence), or 2 lines getting farther apart (divergence). MACD calculates the space between a fast moving average and a slow moving average as they move toward each other and away from each other. A change in space provides an indication of trend, which is simply momentum plus direction. When momentum is fading and/or direction is changing there is a change in the space between the 2 lines. When the fast line comes back toward the slow line momentum is fading; and when the fast line races away from the slow line momentum is building. When the fast line crosses over the slow, there is an indication for change in market direction. FACT: MACD is an effective tool across all time frames and all trading instruments. Gerald Appel developed the MACD in the late 1970s for the stock market. Not much has been written about

Jennifer Thornburg

it, but what has been written mainly involves divergence, and buy/sell signals using the trigger line crosses, changing up the MACD settings according to stock market conditions. Trigger Finger Trade ~Start with an Advanced Hopper trading mentality. Dont forget all the stuff we learned about recognizing when to hold and when to fold. ~Use the Trigger Finger Trade when your Hopper trade is over to get the next leg up if the market it trending. ~MACD crossing over the signal line (or Trigger Line) can designate entries or exits. ~If your Hopper is taking profit based on a higher sup/res target, do not let the Trigger Exit get in your way. But when your Hopper is over the Trigger Finger setup comes into play. Trigger Finger to Sell: 1. MACD Line is already below zero. 2. MACD Line had crossed up over the Signal Line, heading toward zero, but it turns around and continues going down. 3. MACD Line crosses the Signal Line to go down Thats a Trigger Finger Sell. Trigger Finger to Buy: 1. MACD Line is already above zero. 2. MACD Line had crossed down over the Signal Line, heading toward zero, but it turns around and continues going up. 3. MACD Line crosses the Signal Line to go up Thats a Trigger Finger Buy. Profit targets Same as Hoppers: 1. 5 min charts, 5 to 15 pips. 15 min charts, 15 to 30 pips. 2. Wait for Trigger Close. Stop-Loss Same as Hoppers 1. MACD Line goes back over the trigger. 2. What you lose you have to make back. Keep an eye on price-lines.

Jennifer Thornburg