The Stochastic Indicator

fyi:

got short on break to new low 985.75 and coverd at 983.50 for small gain of +2.25...currently long as rocket ended

so -1.25, 0.00, +2.25 on the day.

long b/c fail to traverse, 5m macd divg lows and xo.

update:
exit for -0.25 as mkt is flat and no volume

 

This is how i saw the morning rocket. Got short at 9:49 realizing that i was getting short on the second pt 3. Our pt one was at open, pt 2 @ 9:37, pt 3 @ 9:41, 2nd pt 2 @ 9:44, and i was shorting on the second pt 3. It then traversed the channels until it failed to traverse at 10:00. I therefore covered my short and got long.

I know everyone hates using the 1 minute but i use it purely for finding flaws in the sequence. I dont worry about price, i am just watching for the next pt.


I think i could probably do this same sequence on longer time frames as well. The longer time frame stuff that Jack is talking about is pretty interesting. I still dont really understand it though.

 

Please take this as constructive commnet.

you guys are very adept. This means get the fuzziness out of the picture.

Be very firm in your thinking. But not cavelier.

Let me micro manage you on the 5 min.

You sit through the first three bars as experts and you see everything. Pre flight is done etc.

That fourth bar is inside and you have point 1 on the first bar. The pro rata volume on this is low.

You well know from a 15or 30 min that we have a channel runing from the 7th. And you know full well that we just came off the left side and are traversing to the right side where FLAW cards first come up. we know the news yesterday just took us to the away side of the current IT channel.


The setting is this. Today the first trade is to take down the money getting to the tendline.

Unitl you see that on high pro rata volume the short is not playing out, you ride that puppy until you come off the right line of the IT and go long.

What I am saying is KISS.

you are absolutely correct in playing off the 50% and seeing divergence. This is not astart to trade signal. by now it is a confirmation signal that you are in shoprt right on the sync.

None of this takes balls. What is takes is being you. There are a lot of others reading this and I am talking to you too.

You are so conscious at this point that you would know you had bugs on your wings half way up a thermal. So do an outside roll in the cloud bottoms when you get there and clean thebugs off.

Do noT hamper your excellent consciousness with any more "what if" stuff.

I told one of you to exit on the bottom of the congestion coming up. that simply threw 5 more poionts into the trade.

Do you think I have any qualms or what ifs? well i do not.

That bottom also pulled a gold leaf flaw card up too.

It said "failure to traverse ( right to left.)

Turn it over.

It says "change is in effect" This means C%R stop to double down.

you see that 50% right there

You see it ride the 50%

you see everything. now you must go for the gold.

I mean go for the gold. This is SCT and you have it all going for you. Period.

I am extremely proud of the ES stochastics group. you guys are the reason why.

There is no more bench time for you guys. Only sweat because you are performing at max.

 

I think I'll do an exercise of the day from now on.

Do this. On the trading fractal (5 min normally) look at the color of volume bars (mine are coded to price, up black, down red).

When you see a relatively high bar (recent one) the color is the trend direction.

Draw a vertical line on the chart between where they change their indications. Notice that when it does cross the indicators that they are between signal readings If not move it a little bit.

I know this sounds dumb and corny but it will relieve tension from what if land.

You posts really help me out terrifically. the nuances in them show where your NLP pictures are playing. Your posts allow me to throw pictures at you.


You will notice here that when a person gets my pictures, they express relief.

The expressions "bug" and "bugging" come from a moth stuck in relay contacts on those old slow motion computers. I come from an era where we ran racks of relays in rows to square away stuff and ideas. A bug getting into the relay contacts is where the name originated. A lot of other stuff got in there too and they were not reliable either.

My comments will not ever "bug" you. They are injunctions to move up another plateau. Keep your relays clean.

 

We were typing at the same time. Your post is terrific and it is not risky to move to the 5 min. Doing this will still give you the flaws and you will avoid thinking you are seeing flaws on the 1 min.

 

as the 13:15 BO comes up, please watch the color of the volume bars.

 

only other thing i had today was this:

14:40 was failure to traverse and 5m macd divg top within a slow up trend...reversal signal...trend breaks down into a short rocket nice move.
easy one to spot

short 986.00
cover 981.75 +4.25

exited above 15:45 bar.

 

I took the same trade at 15:06, poor execution on my part and I chased down to 983.25.

I did't cop to the failure to traverse, but picked up the rocket and violation of the 30m trendline from the 7th.

covered @ 981.25, +2.

+2.75 for the day. Although I missed the KISS big picture, it was a good 'discipline' day for me.

I have little voices telling me about the available slaloms, and they're getting better and better at it, but I'm not brave enough to listen to them yet.

So, on the 30m, we either have a new point 3, or we're in change mode. I think this implies the next few days will be fairly volatile(edit: on the 5m)-- or am I getting this backwards?

regards,
laz
--laz

 

Yeah, I noticed that last night. Judging from the size of bids and asks that jumped into the picture yesterday, the tighter channel from 8/7 was important too. I quit for the day before seeing the bounce.

regards,

laz