Jack Hershey's trading methods

Discussion in 'Strategy Building' started by cnms2, May 23, 2006.

  1. Thought Id post this chart as it looks like an ideal rocket coming up and in fact I was watching intently but the one thing missing was the volume. Macd was crossing .4, Sto was over 80, and price was at the hod, but as you can see on the timer, prorata volume for the 5 minute bar was only about 1k half way through the bar and never did get over the 10k line through the entire false breakout.
     
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    #41     May 26, 2006
  2. cnms2

    cnms2

    Thanks easyrider. So you didn't take this trade because the PRV showed a flaw ...
     
    #42     May 26, 2006
  3. Right. I took the snapshot as it was happening so that I wouldnt be accused of hindsight. The parameters for these trades will keep you out of trouble if you learn them. It does not seem to occur to some people that it might just be possible that they (god forbid) might not understand how something works because they cannot fit it into some preconcieved mold they have in place for any number of reasons. Its really too bad.
     
    #43     May 26, 2006
  4. Aok

    Aok

    Easy,

    What are the settings for MACD and FStoc?

    I have seen several in different threads.

    Thanks.
     
    #44     May 26, 2006
  5. Jack recommends 5, 13, 6 for the macd and 14, 3, 1 for the stochastic. I have experimented with many different settings but always come back to these because they seem to work the best. The only thing I do different is use 14, 3, 2 for the stochastic as it smoothes it out a bit and doesnt seem to change anything.
    Some people include the 5, 3, 2 stochastic but i never did figure out how to use it correctly. Jack also uses the histogram of the macd for the trend setting while i use the slow line as it seems to work better for me.
     
    #45     May 26, 2006
  6. cnms2

    cnms2

    I feel your pain ... :)

    I know how it feels when you face an unreceptive or maybe hostile audience, and you feel compelled to make your point crystal clear, leave no possibility of doubt or misinterpretation.
     
    #46     May 26, 2006
  7. cnms2

    cnms2

    You can read the full post here.
     
    #47     May 26, 2006
  8. mhashe

    mhashe


    The second exercise is actually an extremely powerful strategy to rewire the neurons correctly. Often times when traders get stopped out or close out a position with a loss, they have difficulty instantly taking a good counter directional trade signal because of an emotional attachment to the most recent prior position.


    ================================
    Drill two is to enter and then, slowly, look for the best entry in the opposite direction. Stay in the original entry until you a damn sure the one you have found is really super, then take it right after you close out the prior entry. Do this 100 times and do not exceed 20 times a day. Do this on the way back from the Carribean. Keep sending the money to your mom. Fuck your dad, he was bugging you a lot about a lot of things anyway.
    ================================

    ....better to do the first exercise in a real time demo account, probably helpful for those who have a fear of putting on a position.
     
    #48     May 26, 2006
  9. cnms2

    cnms2

    See bellow my three month expectancy and money management numbers. (from the Money Management thread)
     
    #49     May 27, 2006
  10. achilles28

    achilles28

    Good to see Jacks work is alive and well, cnms2.

    I'm exploring Jacks CCC theory (Congestion, Convergence, and Centering) as a filter for an automated FX system.

    I already use a 'centering' indicator (low volatility/flat price action) as a predictive breakout filter, with success.

    What I'd like to see is annotated PICS of actual congestion, convergence and centering sequences.

    This would prove far more useful than the uh....overly verbose replies? that are routinely offered to such questions.

    If anyone could post a few charts and quickly mark on them areas of congestion, convergence and centering, I would truly be grateful.


    After seeing a few CCC sequences marked correctly, I'll have a much better idea of what Jack is talking about and what to look for.

    Pictures are worth a thousand words.

    Btw, i work a full time day job so forgive me if it takes a few days to respond.

    Thanks so much.
     
    #50     May 27, 2006