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. cnms2


    The STO 5,2,3's %K xo 50% catches well the tapes' RTL BOs, while the STO 14,1,3's %D xo 50% catches well the level 1 channels' RTL BOs ... Getting into the 20-80% is an early warning ...
    #51     Jan 6, 2008
  2. In this post I am responding to your chart and Q's and keeping the focus on making money and the STOCH's. Each point I make to you has a reason.

    1. Always use a universe and from it make up lists. Please check through how people get to focus on a list. Download and print "Putting the pieces together" to see how a typical day goes using a list that is appropriate.

    Reason: PVT works because it is related to a list that is timely and the list only comes from a universe.

    2. Do logs of your stocks every evening. There are many completed logs posted and there are blank logs that you can print and fill in by hand. I have annotated many logs that have been posted.

    Reason: This will get you to a place where you can post logs and associated charts that are pertinent to what is going on right now.

    3. Go over to the last few pages of the recently closed equities journal and pick up the latest version of the script that makes picking off enteries quite routine.

    Reason: you need to get oriented and organised and up to date on what is possible for trading equities.

    General comments on your chart.

    TASR is not a timely chart to be using.

    Trading stocks is done by picking the best stock available which is beginning a very strong long traverse. This happens at BO on a trendline that is short.

    It is okay to front run such a stock. The prior event to a BO on a trend line that is short is an FTT on that prior short channel.

    Draw in paint brush or equiv an picture (just a line graph) of price following a non dom traverse after an FTT. Draw this line in red and show it approaching the RTL of the short channel.

    At the RTL draw the two possibilities of a BO (draw in blue) and an FBO (As defined by Spyder) (draw in green).

    Please post the result.

    There is also an example of this which is the mirror image. We do not concern ourselves with this mirror since a stock in the mirror state cannot make the list for trading purposes.

    Now, what is on the table is the pristine beginning of a trade to make money. The best stock available has a high rank and it is always available for choosing to enter because it is on a list that is sorted by "unusual volume" every day. In "putting the pieces together", you will find a narrative that has illustrations that show EXACTLY what you will be seeing the rest of your life.

    All the time, it is true that a short trend ends with an FTT. This is a dominant traverse not making it across the short trend channel. Then the non dominant traverse that follows the FTT point moves to the RTL of the short channel. Here in the next am, a lot of volume kicks in and a BO is underway and it is in the same direction (long) as was the just ended non-dom traverse that followed the FTT.

    Point 1 is the FTT; point 2 is the exit of the trade for a profit. This represents the dominant traverse of the new long trend of which you have points 1 and 2.

    In scoring, the coming to the BO from the FTT is a time of diminishing volume to a DU value. It is the 0 scoring day or so. As you see the BO of the RTL you also see huge volume called FRV and the sentiment is now long for a score of 1, 1, 1, which is a 7. we have gone from 0, 0, 0 to 1,1,1. All three values of the score changed. This is the red arrow you drew going from red to blue.

    We hold through scores of 7, 6, 5, and get out when 4 goes to 3.

    There are 15,000 stocks out there. We have a universe that ALWAYS obeys the rules. In that Universe there are always stocks that are getting ready to make money by doing the deed mentioned above.

    Lets say you post 5 of these every day until 01FEB07.

    In a smiling way, I suggest that TASR is not a stock that will be posted.

    You have a simple task that will take 15 minutes each evening. If you wish you can post them before they trigger or you can post them the day they trigger.

    I frequently use a stock that was like old reliable at yellowstone. I posted it because it was used by a person to do the above and she happened to shift from an EOD chart to a 30 min chart when she had the stock on her list.

    As an advanced person (meaning she was the relatively rich trading type because she was focused and knew the value of bringing 5 stocks a day to my attention each time we met).

    The 100 stocks you post (20 days times 5 a day) will be like 20 meeting she had with me. This one stock showed up for her 5 times. Each time she held it for 3 days she made money (4 times). The one time she did not hold it, it did not make money. that time she discovered that it was not going to make money before it did not make money. The reason was: it did not meet the criteria to get on the list.

    Scoringcomes from mesuring P, V and A/D. A/D is sentiment which we measure with STOCH (5, 2, 3). A is above 50 and D is below 50. We want D to change to A. We want P to go from down to up. We want volume to go from down to up.

    Up and down are relative to the prior condition.

    As you trade streams of capital that are all using the above, you see capital compounding. we want the exponent of the binomial to go from 40 to 50 to 60 to 80 to 100 as soon as possible. And we use the highest ranking stocks to do those short (brief)position trades.

    When the score canges from 4 to 3 we exit. The slow STOCH tells you this point in time. the score goess from 1, 0, 0 to 0, 1, 1. Can you see that this is the mirror of 0, 0, 0 going to 1, 1, 1? Yes you can because you recognize that all three numbers have change simultaneously. These are called sea changes.

    For trading, a person begins simply by doing what the market says to do. Then you just keep doing that forever.

    Please display your charts so, from top to bottom they are ordered: Price, Volume, MACD, slow STOCH, and fast STOCH.

    We have known sequences for the photos of the condition of each of these. These trains are synchronized; they corroberate what is going on for each bar of progress.

    The list that is HOT has the stocks you own at the top for the duration of the hold. the day you get into them they are rising to the top by cremeing upwardright off as the day begins. as they come into view at the top, their prices have not change very much at all. the price changes after the volume get to the place where the trading knocks off the meager clusters of price values one after another until we get to the place where we check out and sell a few days later in the am.


    The equation of unusual volume is a new one relatively speaking.

    UV = today's volume/ 65 day average.

    This is the best we can presently hope for from the programmers who support the platforms. they do waht they are told apparently. The name is typical. It is a meaningless name in the reality of making money.

    I have posted the unusual volume answer sheet already in this thread. Maybe someone should send it to the programmers so they can see what they have crudely created. We can reprogram it in a few quarters, maybe.
    #52     Jan 6, 2008
  3. Thank you Jack, I have read and re-read the above post many times, I believe I can only progress by doing drills and trying to work out the patterns.


    This is an indicator of short duration that has a hair trigger (50%) on the tendancy and we watch it on the YM as a leading indicator of ES.

    The fast stochastic going through the 50 % define Sentiment change. therefore, go to all other corroborative sentiment indications and determine that they are "talking" to you the same way."

    #53     Jan 7, 2008
  4. Another drill without the price, note this is globex.

    #54     Jan 7, 2008
  5. Not sure, but my guess.

    #55     Jan 7, 2008
  6. [​IMG]
    #56     Jan 7, 2008
  7. not too bad. . .
    #57     Jan 7, 2008
  8. stereo70


    #58     Jan 7, 2008
  9. [​IMG]

    I haven't marked gaussians on this chart, I use ensign for that purpose. It's much easier to draw lines with ensign than QT :D
    My simming results using 3 - 10 contracts, amazing!!:p
    #59     Jan 7, 2008
  10. Munck



    congrats on your +6K$, was it all in one day? Do you follow Spyder's futures method, or are you combining them the MACD/Stochastics?


    thank you very much for your reply, it's very appriciated.
    I'll try to further explain myself here:

    I maintain a quality universe similar to Spydertraders using Qcharts (EPS, float, 65-avg.vol) and WealthLab chartscript rank scan.

    rather than making a list of stocks in DU, I have analyzed all stocks in my universe - every night. I thought that it gave me more 'signals' for trading. I reckon' there is more risk involved.

    I will start doing this as of today, using the templete you posted earlier for inspiration.

    I used the chartscripts and the methods outlined in journal I and II during the summer, but moved on to pure price/volume analysis late autumn.

    I will start as of tomorrow using the v.5.0 chartscripts to see if I can combine the DU methods with my current way (PV).

    I will watch this camtasia, thanks for the tip:)

    I've enclosed a pdf to this post, it this what you had in mind?

    I'm going to London tomorrow (will bring my laptop but limited time for trading/analysis), but when I get home, I'll post the charts you ask of me.

    Again, I'm very grateful for you answering my questions Jack :)
    #60     Jan 7, 2008
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