Jack Hershey – MACD and Stochastics helpers for 123 and FTT's

Discussion in 'Journals' started by callmate, Dec 31, 2007.

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  1. Although I don't trade using stoch's, this thread has encouraged me to re-visit stoch setups. Attached is what I would consider a high probability setup. comments welcome.

    thanks to callmate, padawan, and that old guy for keeping this thread going.
    #201     Feb 11, 2008
  2. cnms2


    Today's last one and a half hour, using YM's two STOCH indicators to trade the ES.
    #202     Feb 11, 2008
  3. Annotated chart of Nikkei attached, too wide to paste in the thread.

    Following the rules (except for a confused 20 minutes around midday*) I had a series of washes before the final trade S13 made the day +50 overall.

    [* Having exited when stoch left 80 band intrabar, I wanted to re-enter long as it appeared the trend was resuming. Instead I should have considered the FTT of the blue channel and waited for the 50 crossover before entering short.]

    So despite my best efforts at screwing it up, I came away with 50 points. I'll give myself 6/10, given that I was tempted to bank profits but instead waited on the 20/80 or 50xo signal (for the most part). I know I can bank, the trick is learning to stay in for the trend duration.
    #203     Feb 12, 2008
  4. see attached for annotations and commentary.
    #204     Feb 12, 2008
  5. Thanks for the pair of nicely shaded charts.

    You can see from this how nice it is to have a set of signals that provide for automatic shading. Just kidding this would be a nice platform accoutrement, however.

    I'll check to see if Societe General has a set.
    #205     Feb 12, 2008
  6. In zee name of all that is sacre and SG, she is sacre, I challenge you to a duel using zee lies, deceit, calumny and obfuscatiion as les armes du bateille.

    Too Right Fred
    #206     Feb 12, 2008
  7. I only watched the market for the first half hour or so, therefore my log is incomplete. I will post my chart later on. :D
    #207     Feb 12, 2008
  8. Thanks for the comments. Could you elaborate more on the intrabar decisions and getting in on the right end of the bar? (For the ES, the YM is enormously helpful. Unfortunately other markets do not have an equivalent helper.)

    I'll summarise Jack's comments on my chart:

    1. Annotate P and V as your primary focus.

    2. 5,2,3 stoch: watch for the fast line 50 crosses.

    3. Note the nature of the 50 cross - are the fast and slow lines divergent or convergent? (D is strong, C is less convincing and may not sustain).

    4. FTTs show on the slow stoch as peaking, flattening and crossing of the lines at the extreme.

    5. Normally the 50 cross soon follows an FTT.

    6. Do three levels of annotations (forest, tree, branch) for context.

    7. The MACD crosses support the coarse level considerations (tree) and the zero crossovers coincide with the change in dominant side (forest trendline breakout).

    It is no coincidence that the settings Jack recommends coincide with the channel annotations. I find them helpful and comforting, especially when I cannot use the YM.
    #208     Feb 13, 2008
  9. See attached.

    S4 - I really wanted to hold here, but went with the fast stoch crossover (cost = 25 pts x 2), reversing long early on the next bar.

    Other than that, the indicators helped me stay with the pm trend. For the exit, I like to be flat before 2pm and I took the FTT.

    +115 pts, 6 actions.
    #209     Feb 14, 2008
  10. Slow stochasitcs and MACD are missing, if I add them now, my channles will go kaput :D
    #210     Feb 14, 2008
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