Jack, you say... "Trading is a precise mathematically based effort. There are no descretionary things like those that you raise in your Q's." On some markets, like ES, there is an astounding mathematical precision, but it's not always there in the way we see it. Take channels as an example... they may give perfect reversals and then the channel fails. Someone else may see it as an exact fib reversal, but I was using channels and didn't see it until close to or at breakout. Your channeling technique requires lots of trial and error, lots of adjustment and discretionary skill. The mathematical precision can be seen with hindsight but there were lots of adjustments made to the channel lines because of random noise within expected boundaries or channel breaks. The way institutions use channels requires very little adjustment. It is all automated and when the precise mathematical relationship is reached it is clear, obvious and easily programmed. I think what you are doing is so discretionary it would be impossible to programme. I have seen attempts on ET to understand what you are doing and backtest it. It made me laugh because it's so discretionary such backtests are doomed to failure. Discretion is an essential part of any method where precise mathematical, mechanical rules cannot describe what the trader is seeing. If you system is not discretionary, get it programed and make a fortune.
as close to realtime as I can copy, highlight and post. Indicator tells me here - no noise - before green candle is complete - reverse.
lol a macd cross also note that the green candle in question is also a reversal candlestick pattern in itself, a kicker + bullish engulfing.
silver, you missed the point. The position could be taken before the PA signal as well as qualifying the trade
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.
silver - what you said was correct re PA but it was a poor quality move down in PA terms. Could easily have resulted in noise. The indicator said it was ok to expect a decent return for an investment and to take the trade before the herd got in - before the PA signal completed. This allows for a bit more profit and a closer stop. An indicator can qualify a trade and get an entry before the PA traders have got their confirmation. I rely on PA but benefit from indicators. I think this is a very good example because in PA terms alone, it is a risky noisy trade. To take a green candle when the move down has so many overlaps is very risky.
After many experiments I removed all indicators from my charts and currently use just PA, volume (both raw and bid/ask) and S/R (both horizontal and trendlines). In FX just PA and S/R for obvious reasons. For me this turned out to result in earlier and better r/r entries. When I used indicators, my fav. was CCI for it's ability to be fast enough. I know people who use indicators and make way more money in % return than me, but they certainly don't just trade XO's too. More like Yoohoo have posted - they get a feel of indicator as a clue before it actually confirms something by crossing or turning.