Congrats on a good day. However, on your last trade I don't see any divergence between price and stochastic at the points you have drawn a line. What was your reason for entry here. Also, what settings are you using for your stochs? Thanks
Actually, that was a convergence. The way to interpret this is: Look at the blue lines. If you were to extend the lines to infinity, they will eventually converge, and so makes a valid signal. Now, notice the green lines. If they were extended to infinity, that would not converge, so this would not be a signal. This is how Mr. Lane explained it to me. Hope this helps... BTW...I'm using 8-3-3 on the stochastic and 133 tick bars BTW...when your wanting to go "SHORT" you want a "DIVERGENCE"...if you want to go long a "CONVERGENCE"
This happens to me, too, occasionally. But if the signal is still good, I will re-enter either immediately or by using the next higher timeframe. This type of strategy is rarely wrong on two consecutive entries. If it's no secret, at what exact point do you enter?
I place a market order as soon as price makes a higher high, or lower low, and stochastic looks good for a setup.
That's not too much different from my entry (explained earlier in the thread). Do you have a provision for immediate re-entry, or do you wait for a new setup? Edit: I should have checked your chart first as I would not have entered there, but my question is still on the table
Wow, the use of divergence and convergence have taken on new meanings from the way Lane described this indicator in his original video. It doesn't surprise me though, he is a bright guy. I wonder how you were able to stay awake while he talked to you. He is not Mr. Excitement. I had the same question as macal until I read your description. Thanks for the clarification.