The Stochastic Indicator

Mike, good idea. Jack, if you prove me wrong I will call you on the phone and apologize as well, if you want.

 

It's much easier to interpret them at the EOD. Now, don't tell you you did not know that?

 

The number of posts on ET dismissing out of contempt that which the unenlightened failed to comprehend amazes me even now. I have spent more time lurking here than posting absorbing knowledge from any willing to share. Unfortunately, another individual willing to teach others plans to depart this corner of the internet. How many quality individuals need to depart before the lesson is learned?

I have been reading Jack's posts in numerous locations, and while complicated at first, understanding comes after effort is applied. Numerous sites have archived much of his writings, and he has significantly improved my trading with his lessons.

Jack isn't the ONLY one to claim a newbie trader can make a certain dollar amount trading one contract of the S&P. Sunny Harris in her book, "Trading 101: How to Trade Like a Pro." makes the same claim - down to the dollar - and provides a framework for how one might arrive at the total. She does NOT however, teach the technique as Jack has attempted to do here.

How convenient it must be, now that Jack has had 'enough' of the crap spewing so casually about, to claim he left 'just before his Labor Day deadline' rather than trade realtime. To blame Jack's departure on anything other than the vast amount of negativity guaranteed to greet anyone willing to share ideas on this board, is to sidestep responsibility.

More than 90% of the crap masquerading as "constructive commentary" would cease to occur if you stood face to face with your fellow ET Members. Unfortunately, the faux bravery you feel resulting from distance and relative anonymity fails to hide your true character. Perhaps, the powers that be will step in and force the infantiles to grow up before more quality individuals depart these boards.

Spydertrader

 

surely jack is a responsible trader and teacher, and he would continue to take care of his followers. it seems he would soon put up a web site for all his teachings. maybe for now he just needs to 100% concentrate on writing up his Coder book and web site contents, and he then could announce his launching date soonest. we just patiently wait and see. goog luck jack and peace be with you!

 

Tomorrow's Newspaper Today:

http://sputnick5.www8.50megs.com/


MSN Groups discussing Jack Hershey Methods:

http://groups.msn.com/ShortTermStockTrading/home


Jack's Documents:

http://mycoolstars.hypermart.net/


I also recommend the Google Archives in Misc. Invest. Futures.

Spydertrader

 

Here is a post on how Raschke "sees" the market. Trendfader, i posted this for you to maybe "see" what you have been misssing. Raschke as YOU POSTED IT a well established GURU. I am going to show you how similiar Linda and Jack view the market.

My intervening will be where the ****** are

post from futurespartners.com:
Trader Linda Raschke Provides Tips on Day-Trading S&P
By Jim Wyckoff

(Note: I wrote this story a few years back, when I was a journalist with FWN.)

The S&P 500 futures market is a trading arena unto itself, which can accommodate many different trading styles, according to Linda Bradford Raschke, a well known trader, lecturer and president of LBR Group, Inc.

“Not only does this market display a different daily profile than the other futures markets, but it has a much longer “length of line” (intraday swings), which offers more trading opportunities, she said. “Additionally, there is a wealth of information provided by many internal indicators on the equities market that some professionals like to monitor.”

Raschke is a featured speaker this weekend at the 20th annual Technical Analysis Group (TAG 20) Conference here, sponsored by Telerate Seminars.

Below, the longtime trader provides some tips on trying to be a successful S&P 500 day trader. “However, let me also say that the majority of the professional S&P day traders I know tend to specialize in just one pattern or trade just one style. This is definitely a market where overtrading can be a temptation.”

“SWING TRADING” CONCEPTS

The principles of “swing-trading” involve applying basic technical analysis to the secondary fluctuations which occur in a market, said Raschke. “We can apply these principles to all timeframes and all markets, but they work particularly well with the S&Ps, so a brief summary is first in order.”

Swing trading is following the price action and learning to anticipate the market’s most probable course of action. “We learn to determine the immediate trend by observing whether upswings are greater or lesser than downswings. In a simplified model, we look to enter on retracements in the direction of the trend. An early sign of a trend reversal is a ‘test’ of a most recent extreme price level which usually forms a higher low (or lower high).”
*****she is trading towards the trend as jack does. The loser trendfader tries to fade the trend.

A trend reversal is confirmed when the upswing leg exceeds the length of the downswing (or vice versa). If a trader enters a position on a “test” looking for a trend reversal, but does not get this confirmation, he should exit the trade or pull his stop up close to his entry price, said Raschke.

There are also periods of market rest, consolidation or low-volatility range contractions. These patterns provide an opportunity for traders who like to trade “volatility breakouts”--a methodology in which one waits for the market to tip its hand with a powerful thrust and then jumps on board in the direction of the movement. “This too, can be a form of swing trading, as we are playing only for the market’s next immediate move and not making any longer-term valuation judgments.”
****** the above paragraph Linda explains in Jacks terminoligy what CCC is. What Linda calls a powerful thrust is what jack calls a BO out of centering.

“When a trader practices the principles of swing trading, he learns to develop a conceptual roadmap in his head. In the S&P market, it is particularly important to learn to think in terms of concepts because there can be so much distracting intraday noise.”

Some more examples of concepts, in S&P 500 trading, are: mid-morning trends tend to carry into 11 a.m. Central Time, plus or minus 15 minutes. The best average intraday trends tend to last 45 to 90 minutes before having a countertrend reaction. The earlier a trend starts, the earlier it “peters out.” There is often an opportunity to play off a reversal of the move into 9 a.m. Central Time, plus or minus 15 minutes. The markets tend to be more emotional at the beginning of the day, when a good move counter to the initial opening swing can occur.
*****Jack stresses 11:15 as Linda does.

“If you learn to think in terms of concepts, you can master the markets instead of becoming a slave to the charts,” said Raschke.

TIME-OF-DAY TIPS

On average, there are only two to three “great” S&P 500 intraday “legs” or swings, said Raschke. “Most professionals catch only three or four really great trades a week, if that. Most trades will often be very small wins and losses. So don’t be too harsh on yourself if you feel that you are missing the majority of the movement. Overtrading suckers one into seeing only the trees and missing the forest.”
***** again Linda says there are 2 or 3 "great swings intraday. Jack has said the SAME thing in earlier posts. This is the money he is going for. The big legs. Its funny that Linda sais the same thing in the above paragraph. she also goes on to say that most professionals get only 3 or 4 great legs a week. Jack is trying to capture those 2 too 3 intraday legs in its entirety. Trendfader is busy fading the 2 to 3 intraday trend legs.

Traders tend to be creatures of habit, and thus it is easy to compile market tendancy charts. There are several key patterns which have held constant over time, she said. “One common pattern might be the market rallies or sells off into noontime. At this point, a large percentage of the floor traders and brokers in New York go to lunch and a countertrend correction begins. When the late stragglers get back from lunch, the morning direction tries to reassert itself again.
***** Jack sais the market slows down during lunch so you should slalom and play the BO in the afternoon. Linda says that their is often a countertrend during lunch with the pm reasserting its trend direction again.

“If the afternoon rally or sell-off starts too soon, it won’t be able to sustain itself through the end of the day. It will die out around the bond close. However, if there is an afternoon ‘shakeout’, usually between 1-1:30 p.m. Central Time, then the market can finish in a trend mode into the close.”

Raschke said not to fade a move into the last hour of the day, “for there is no time to exit gracefully if wrong. The odds suggest a better entry price the next day on the probable morning follow-through. Moves on Friday tend to end at 2 p.m., not 3 p.m. Central Time, as too many traders prefer to flatten out or even up before the weekend.
******again, trendfader is fading away. he is the 90% loser category.

“On many days there occurs what I call the 2 o’clock jiggle. Right around the time the bonds close, there is a great 10-15 minute scalp trade. I believe it occurs as an emotional reaction to how the bonds go out. The trade usually lasts for no more than 10 to 20 minutes, but is fun to anticipate.”

Sometimes a good selling opportunity occurs around 1 p.m. Central, she said. “In fact, it is amazing how many good turning points occur on hourly readings, for example, 9:00, 11:00, 12:00. It think this is because people are more conscious of time at these moments, creating a slightly sobering effect.”

*************************************************
Trendfader probably wont see the similarities in their views in the market because he is in the 90% loser category. He states how Raschke is a GURU. I showed the simiarities in the way they "see" the opportunity in the market. Trendfader, have fun with your winning strategy fading trends. That will get you real far. what a loser.

jc

 

Can't Jack take this thread to some other forum, someplace free of the flamers?

I'd like to continue hearing what Jack has to teach.

g

 

And.......

For those of you who felt Jack was hard to understand: The very same languaging is used by Lewis Borsellino, Mark Fisher, Peter Steidlmayer.....

But, unlike the above super traders who really can't teach, Jack took the time to adjust what he said to his audience. I've never witnessed a more dispicable group of retards in my life than the people at ET who willingly and knowingly choose to destroy the the efforts of those who really give.

No matter, Jack was here; and many of us are the better for it. Thank you Jack!

 

Unbelievable,,,,,same ones too. Thanks Jack for everything you tried to accomplish, it's been a pleasure.

 

You have got to be fucking kidding me. you are the biggest jack ass of all and you are calling for the moderater???