The Stochastic Indicator

Has anyone ever explained how you know when a rocket becomes an iceberg, instead of a failed rocket?

 

Yes.

 

Hello Jack,

Since you confirmed that I was not looking at the wrong things, I concluded that I must be looking at the right things in wrong way. So now, we have congestion and convergence taken care of. I have a picture of both of these concepts. The only thing that remains now is the concept of centering. Once the amplitude of the MACD approaches zero, we exit and bracket the market.

Now, my problem is, what exactly are we bracketing?

My understanding is that we go to a slower fractal, select the VDU bar and bracket the high and low of the bar.

For example, we take the bar on the 15 minute chart with the lowest volume over the last 20 bars. We then put a trend line and bracket the high and low of the bar.

Is that the correct premise?

Or, do you mean drawing a channel based on a point 1-2-3 on the five-minute fractal and taking a break out of the line in that way?

After we clarify this point I will have most of pictures in my mind as far as the sequences we should use.

On an aside note, I have noticed that icebergs on the 5-2-3 stochastics precede rockets on the 14-1-3 stochastics. Am I looking at this in the right way? The 10-2-3 stochastics seems to make an effective bridge between the two. This combination seems to be helping me remain in iceberg trades with a little more confidence.

Regards,

Oddi

 

Pre open flight check
Before open look at the picture. NC means no change

a. do 5 min chart viewing. Mine is two screens wide and I see all of tues, weds,thurs and Fri. four plateau connected by trends. we look to be in evne harmonic land. I see that the top of the graph os almost 1000 and the bottom is 975.

dropping Tues is NC. yesterdaywas a step all day at the R of S/R. Still have 975. Extend channel lines into am.

Drop Weds. Four days form pennant, We have lost 5 pts each on the S and R. We are easing out of the even harmonic.

b. Volume is scalloped and not very regular for each day. This means the days are not uniform and they look light and anemic.
IT DOeS NOT TAKE MUCH VOLUME TO GET BOS. LOW volume is EXTREMELY LOW. I see volume yester day as more flat and 10,000 for 5 min was the rule. On 15 there is no scallop to speak of. Look for 20,000 as indication of a day that could have a trend

above still holds. Ignore the 40,000 volume on the spike
c. last four opens are all different. BUT ONLY ONE GAP. Yesterday ended with a four day centering. Look to bracket in . See my reply to Oddi.

d. The rockets, if any are short ones and I need to go to 15 for stretching them out a little. This is the big issue. Patience is my focus. If I cannot get abord a rocket I will wash if beginner. This is a test day for intermediates to hang in there. after hanging in for 10 days you will be good at it. Do stop log and see no new stops as a signal for end of points 1,2,3.

As long as entwine holds you stay in rocket on this lower volume situation. Entwine prevails over other stuff; let it dipinto 20/80 band. Watch to see that rockets can follow opposite rockets in this narrow H/L market.

e. Icebergs stink. There is no hustle anywhere to allow me to stay in icebrgs.
for this market we start summer ice bergs. when you exit an iceberg do it as a reversal. that way you can continually iceberg from now on.
f. 11:00 for last few days means midday shut down. NC

g. 13:00. I can make a buck everyday on a BO around 13:00 plus. Bracket time for sure every day.
NC
H Slaloms. Count on slaloming. Slalom out of sync on brackets. Be prepared to slalom on the pm BO's (See g.)
NC
i EOD let broker take me out as usual. NC

NC means no change.

Keep stop logs rolling. you will be seeing more periods of NC on the values. deep summer is in effect.

 

try this. do your preflight check as a debriefing at the end of the trading session.

you gt two major benefits: first you learn to tie up things for the day. Yes, you are tired and you are successful. as you knock down bigger bucks on multiple contracts, you are in a place not expected a while back. the cost of living stuff is changing because you are not postponing some of your wants anymore. as this change of venue sets in, you are living a larger life. the headlight on a '94 750 BMW costs 1400 bucks plus labor.

You have a responsibility to sustain your progress. this comes in the form of developing a superior routine. think of it as a regular business situation. You face a client; you do stuff and you have a new result on the books. well you have to write up a report on this. it is a debriefing for you and your success.

Lets get that done at the close of business.

second effect. the closure effect comes into being. you wrap up the day. you now have a clear and major clean period of time. this is something else. It affcts quality time: diner; entertainment; relaxation; private time; putting in the headlight carefully time. best of all Bedtime. we do lots of things in bed. as a silverback i strive for freedom in my nocturnal world. having closure on successful days is a nifty warm up drill for the best parts of life. believe me, here we get all the fleas and ticks out of our rugged maines and is is fun.

my capitalization has slipped to a new low. Ugh.

 

i was speaking in terms of typing not investing....lol.

i hope you appreciate the dry humor some days I can't resist.

We are rolling through the duldrums of summer at quitea pace.

Keep the Q's coming. as stuff advances we need to get some style...........

 

you used the fifth bar VDU and center was 989.1.

The MACD and STOC is not letting beginners and intermediates in.

the three bar stall is covering the "short" bracket that took you in. we didn't get the 20k volume so there will be a 4 oclock drift in price into 11:15.

keep your 5 min scale on 10 points.

 

bars 1, 4, and 6 are points 1,2,3 respectively.

look for new point 3.

 

STOC is there for beginners and intermediates. The MACD histogram doesn't cut it though.

YUO STAY OUT