Registered: Apr 2012
04-14-12 04:30 AM
Quote from tihfa:
thanks for the thread and the video.
how do you use stochastics? if you were in a downtrend bias would you not want to
1) short a price pullback with stochastics rolling over 80 and under as a signal to short
2) stochastics moving under 20 during consolidation breakdown
also how do you use keltner channel?
looking forward to more trades and video.
tihfa, as far as stochastics and keltner bands go, I don't really use them for entry or exit decision. Honestly, they're mostly there out of habit.
The only real use I get from them is to give me a little added confidence to pull the trigger on a trade when I start to let some form of fear/doubt creep in. As you can see from the video recap, some trades make sense with a stochastic signal as you described, but some are completely opposite from that.
I'm of the humble opinion that most traders go through a painful process of trying to find the perfect indicator or combination of indicators to be successful. The learning I've gone through has led me to realize that all these indicators are derived from price action. I focus on price action. Notice the keltner bands are very faint on my charts.. That's so they don't distract me from what I feel is most important... Price action.
I hope this answers your question, and provides you and others more clarity on how I trade.