I recommend that people start with the "standards". For example on pp 352 of Magee (7TH) you can see the original and the updated original. If a person is making a third pass on the standards, then I would recommend a book like the one I named before: "Trading from A to Z" It is written by Achelis, the CEO of Equis Corp which does the Metastock platform. You can do the highlighting of the old defaults and put in the contemporary ones and have a lot of info in the same place for reference. For example, in A to Z the are six ways mentioned (pp 271) (mathematically) to run the %D. And another variable is introduced. On the Web Chris Lott spent many years getting the Q and A part of TA available to the public. there you can read about some of the transitions indicators have gone through with respect to modern technical innovations. It is in 24 parts now (alphabetically organized.). If a person is doing P&F they may get to 3 bar and then renko. In A to Z these things are all cross referenced and their relationships are compared and contrasted.
You know what's funny Jack? I would have bet money you weren't going to post a stochastics equation. Anyway, I've got plenty of trading books but not Edwards and McGee I'm afraid. So, if I may, let me rephrase the question. What is T H E stochastics equation(s) that Y O U use? And just to make it both simple and time efficient for you to respond how about if you post J U S T the stochastics equation(s) that Y O U use. No explanations, no obfuscation, no history "lessons" and no off topic banter. You know, for us mere mortals.
That's your chart I put up for last Friday. I use the Qcharts equations on YM 2 minutes and ES 5 minutes. I log (landscape) using MADA and there are 13 indicator columns under M The vocabulary of symbols includes up to 15 symbols for a given column. For any given day I do about 4 log pages
Is this system "private"? It looks good "after the fact". How does it look in real time? How "stiff" are the stoch's. Do they "flicker" before the bar "prints"? If it's just rising/falling colors on a stoch, I would have to see this in real time.
LOLOL ... it's another Hershey Special ... I can absolutely gaurantee you that he is not taking those trades real-time, if he were he would average between 500k-1mm per month in gross revenues. Not happening.
it wouldnt work, at all, you cannot possibly consistently enter or reverse your positions at the exact tops and bottoms. Also during the intrabar movement the stochs color would flicker so you would be getting into ''fake'' entries. if you always wait for bar close to enter/reverse positions, you will avoid some fake signals but you get less interesting entry price.
All indicators "flicker". In real time you know the entry ahead of the signal exact time. The problem most people have is that they simply do not know the math of the lines so they cannot "read" the indicators. Trader666 put up my defaults to convey the pied piper (me) part of his life. The red and green is just for illustrating the profit sectors. When a person is trading and he is logging, he has an advantage. As he makes entires on a row he can look up the column and see the indicator past logging. after a while, he can fill in the log ahed of time quite accurately. I often do fill in my whole day roughly before the market opens. I do a preflight check and fill in preopen info, then I go about roughing out the four pages each of which has about 25 rows. there will always be debate on how easy it is to do the hindsight thing and it will always be said that no one knows anything about the betting that goes on. I do not bet nor do I predict. roughing out the day is a way for me to focus on the sequences that will be unfolding during the day. No more no less. I do not care what the market does. My job is to do what the mrket says to do in a market that is a parasite to the cash market. I like knowing two minutes ahead of time what is going to be coming up as the market announces the next several events. here is just a simple example. during whipsaw that most people see, I just look at two "walls" that are showing on the Level II DOM ladder. I have it scripted to see it as stalagtites of ten bars going five bars out from BBid/BAsk. I am just sitting there seeing the limits of price movement as time passes and as the movement is either dominant or non dominant. the fast Stochastics is telegraphing all the while. I also use another design or inventiion that works well ahead of the stochastics on the cash and index that leads ES (YM). here several signals are always in the works: drift, volatility compression, noise to signal ratio, and smart money movement ahead of cash. You can think of price movement for trading as an echo where the echo is about 20 to 30 seconds ordinarily. I have to wait for the real time ES to get to where it will be. The real time ES is an echo of my leding (in time) indicators. The stochastic, likewise, goes through four signals in a specific order BEFORE the trading signal is given. I can either write them in my log before they occur or as they occur or I can play catch up ball. and log them after the fact. You are saying something very important. you see on the forming bar that the indicator display "flaps up and down according to where the "close" could be at the end of the bar. this is because data is streaming and the computer does reps of data more frequent than the bar and less frequent than you eye is able to see the display status. the price, in fact, does move up and down during a bar's formation. My stalagtites are always moving too. they are the sum of about four games played on level two and my snapshots, mentally, are 100 milliseconds glances at their status. I read many parts of two screens to collect THE pertinent subset of what is there to see. I "steer and focus" and then "shut down my senses" to do three tasks rapidly to reach closure on the monitored data sweep subset. Seeing the flapping is seeing some small noise to me that is trivial. The reason is simple. What I am reading analyzing deciding and cting upon is several events before price gets to the point in time of the optimum trade. you are now getting reading to let the flapping not be significant anymore since, in all probability, you will be getting your display set up to look at other components of the data set you need to assemble for doing analysis while not looking at the screen. Decision making is not done by looking at the screen either. It is done by abiding by the pairing of the analysis result with the corresponding predetermined decision that is always appropriate. Logging lets you skip to the right on the log to note the decision to the right of the analysis result. I have to sit there and wait for the "hit T" moment, then when I have time I note down the price value of my action. I don't tab profits during the day. My day is 30 allenhobbs days, for example and i am 75 so I do not fool time away freaking out over anything. People who trade on single elements of information from their displays are the people who are learning to freakout. The market flows. I put up a slow Stochastics indicator from another poster. Everyone who looked at it sees that thee are no odd harmonics V's and inverted V's. Everything is rounded as a peak or trough just like what is formed by a glacier moving through a V bottomed valley. The valley is rounded like the filtering of %K and %D No raw equation math shows. Not everyone can set up a ggod display. Fewer can sweep their good displays. Trading and skills of trading is like a tree. People generally do not go up the trunk. They find the first branch and go to the very end and the branch breaks and they are finished trading. The higher a person goes the more he can see and he can use what is useful to get higher. Cold looked from a distance using no visual ids at SCT for one month. He figured out what he didn't see was a tree he couldn't climb. He was sitting on a five year old branch of a short tree that has totally blown out his mind in frustration. you cannot imagine hold good I feel that he is not tripping over himself in a very tall tree that affords, apparently, unbelievable and astonsishing views of the markets. Anyone with a crayola could see Friday as a 60 point day per contract when the day had a 20 point range. Annotating and logging is important. It is done in a four part routine: MADA. The markets broadcast their rhythms as sequences of signals. The order is always the same. experise comes from work through having purposeful experiences. A carpenter who has been around for 20 years can be an expert with 20 years purposeful experience or he can be a dummy who has had 1 years experience repeated 20 times. It was always his choice. I showed someonelse's chart that gave signals on a kind of Stochastic (intermediate) that turned out 60 points per contract. 20 contracts rolling would have yielded 1200 points. A point is 50 dollars. 5 times 12 is 60 and add some zeros to move the ecimal popint to the right place. At some point, a person has to ask himself, what am I willing to spend teaching others to be wealthy. I spent a piece of my life so far each time I met someone who was willing to invest in himself. I'm going to review logs for the last two days with a few people who have them up to date and debriefed. We like to knock off 15 points a contract in an hour or so after the open to start the day. A lot of the 5 min bars after the open are multi-point bars. The Stochastic is really flapping then.