gooch, thanks for a most excellent response! actaully, my down channel was even a tad tighter as my pts 1-2-3 were 11/6, 11/8 and 11/9, so this down channel was completely drawn in a week ago, i just let things fall where they may after that. Every other channel, moving up in fractals, looks like it matches exactly what I have, and no matter which rendition, there was money to be made from the signal. FWIW, I went long on friday @ $16.24 and i'm still holding.
quicky. I recommend putting a vertical line on the stoch 5, 2, 3, for a leading indicator of the rest of your work. To use it for an impending long, make the mark when the fast line goes up through the 50%. This is a measure of A going to D in the scoring theme; then Granville's V leads price (the P,V window and the catenary sheet showing unusual volume on Q charts); and you entry on price within an hour or so as it begins to move. The Worden Bros are soon to release (I have copies coming to PhD's) a "backtesting setup" good for EOD but not the above. We ran it between their presentations and found "something was wrong with the coding" because of the "out of the box" result. It turned out to be a result not heretofore seen ( We could not enter a sorted universae, however). While the new system will not throughput, automatically nor completely at present, it can be loaded from excel routines and results generated can be further processed with excel routines on the other side to geet total throughput required. It is incerdible as a replacement or writing code We did have to hand set up the defaults and signal take offs for common stuff. It was good to see ROI showing up in the hundreds of % and the W/L ratio well into the two digit range. Within years, they will be able to handle intraday and commodities. Then it will show on the OOM levels.
I know this question probably doesnt belong here but since the sct thread was shut down I dont know where else to post it. I did a lot of reading over the weekend and am beginning to grasp some of this stuff. I see now that the DOM, etc. do not come into the picture until you reach a decision point on the five minute chart. When you do get to the DOM Jack says "the minority is in control". Does this mean that price tends to move towards the majority?
Hi Jack, Like this? I am going to have to think about all that other stuff you said. As far as drawing a line through the Fast Stoch as it crossed the 50% mark... It should be noted that I was unable to make this trade, because I ran out of buying power yesterday. I don't have a margin account. Thank you for the reply and good trading to you. gooch87 <img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=1271878"></img>
Nice call on NVEC! Thanks for the comments Gooch Sold SIRF - $31.54 Sold SMSI - $16.73 Sold GIGM - $10.32 Holding NEU, but not sure for how much longer. Time to debrief - I'm not pleased at all with how I'm doing on decision making for holding and exiting. Entries are ok - still room for improvement - but the other two areas definately need work.
No. Think of 'the majority' as a "majority of bricks" on one side or the other. Which side (minority or majority) is it easier to jump across? More bricks or less bricks (big wall or small wall)? Just as you might find it easier to cart away a handful of bricks compared to a whole truckload, so too does price often travel the path of least resistance. Also, focus less on the absolute values observed at these levels and more on the changes which take place over time on the DOM. Hope that helped. - Spydertrader
Personally, I just put a three weight heliotrope vertical bar in the Stoch 5, 2, 3 container. I like to keep the volume, MACD histogram and price clear of Stoch annotations. I may put a small properly aligned vertical tick below the price movement as a reminder of the BO on price that is coming up the next day.