The Stochastic Indicator

ElectricSavant · Mar 11, 2003

Tampa...

Your 1min MACD theory lets me down sometimes....your holy grail fix needs fixing.....just kidding.

By the way, I am discontinuing trading to watch others and observe. I am at the point of..... lost.

Michael B.

jack hershey · Mar 11, 2003

Quote from jack hershey:

Trend Paces.

snip.....
.

There is another tape to deal with. You can determine the market pace by simply looking for the tape. Use yesterday. Go form 5 min to 1 min and see things get jumpier. Go back to 5 min , then 15 min and finally to 30 min.

***For today (Tuesday) go further up the fractal list to see the tape. Yesterday's tape is showing today as an expanded volatility tape. This widened channel gets filled if you go to slower fractals. with yestedays cahnnel lines in still (extend them for example), you can see that the price lines are slopping out on both sides and the slope is unchanged.
Got from 5 to 15 to 30 to 60 and you will get the picture. See alternating red and black lines that would fill a wider channel of the same slope.

All of this will go far to keep you in trades longer and pull down more profits.

the back testers by now will beging to know where they need to tune. Several people bought up how to tune the backtesting. You have to switch from the close value in the bar to the value at which the condition was met within the bar. I thought several people would suggest that but now from this channel stuff you see that the bar extremes tend to cause signals (like channel width etc).

what will happen is this: people will get more in the groove with "Oh yes, I know that now". Once you know something it is not a task to use it. It becomes a conscious effort automatically and you focus more and more on what you will be seeing next.

you will use sequences to know what to look for. When it occurs
(or better still, when it doesn't occur, you have a flaw that takes you either out or onto a tack (reversing and staying in) so you are sailing with the coming trend ahead of the beat.

This is going to get interesting. It is neat to adjust yourself with wash reversals to take risk out of the picture.

Trendy, get a highlighter nd a black water based marker, shorten every thing as much as you can with the black. Then highlight what you understand. Rewrite in your own words all the uncolored text.

Look at what happened to the channel you drew in. At some point you see that the price bars fill the channel like a child painting (coloring) between the lines. This is a âtapeâ at that point. This tape is a band running at a given slope as a price channel. We are always day trading off the 5 min for the time being.

The âTampa Fixâ is the process to go to the fractal that gives you a âTampa Tapeâ, i.e., a tape that fills the channel up with price bars. You sit on this fractal and trade. You use the next faster to get your stop log and you âanticipateâ there as well.

You can see the Stoc, MACD, volume and price give you identical sequences as before. So there is nothing to learn except to relax.

Yesterday this takes you through most of the day from beginning to end.

Big Point.

Also from now on make your channels interday ones when possible. We are day trading; we get out at the end of the day for one reason: our margin requirement is Â½ that of position trading. There is a major reason as you all know.

We can resume our trade the next day using our prior knowledge and practices.
More...

ElectricSavant · Mar 11, 2003

Like right now...what to do? (12:36est)

14,1,3 signalling long macd at -0.45 (but this is a long trade).

1min MACD is Tampa-long.

Michael B.

P.S. I will just watch

ElectricSavant · Mar 11, 2003

I find that just trading off of the 5min MACD crosses with >0.04 or vice versa works best so far today. But I am just watching and observing....any comment?

Michael B

ElectricSavant · Mar 11, 2003

Ok....at 10:30est the 5min MACD crossed...(not a chop angle either) but......lets waitfor the MACD oscillator to give us or plus 0.4 reading. We are waiting and standing by with a pssible 808.00 entry price long.

Well we waited until.....10:40est and got the MACD entry of 808.25.....

See what I mean?

Michael B.

ElectricSavant · Mar 11, 2003

Sorry in my last post I used the wrong time Zone...i have been travelling around the country and forgot the time zone....sorry these were PST times.

Michael B.

ElectricSavant · Mar 11, 2003

Check this out...concerning the exit of my last post ...just use the Tampa 1m MACD to exit with it's cross down. You would get a quick 1.75 points at 10:54pst...just 14 minutes later.

Michael B.

Scrutch · Mar 11, 2003

Quote from ElectricSavant:

Ok....at 10:30est the 5min MACD crossed...(not a chop angle either) but......lets waitfor the MACD oscillator to give us or plus 0.4 reading. We are waiting and standing by with a pssible 808.00 entry price long.

Well we waited until.....10:40est and got the MACD entry of 808.25.....

See what I mean?

Michael B.
More...

I don't see anything like that... I see the 10:30pst crossing but I don't see a +.4 value until 10:50~10:55pst. Do I maybe have my MACD formula screwed up? Between 10:35~10:40pst I show a reading of +.04.
This brings up another question I have had but never asked anyone. Why is this market always quoted as est when it is traded in cst?

ElectricSavant · Mar 11, 2003

Scrutch,

You are correct....I should use CST times with the CME. I will make an effort. I know this is not an explanation to my use of est. I sometimes use my computer clock which is set to pst, which my charting programs uses in the scale. I might be moving to Chicago soon, which will solve the cst problem for me, and I will only use that as the time..... as I am a full time futures trader.

I actually have a multiplier of 100 used in Investor R/T charting program which actually converts the decimal to 40.0. I use plus and minus 40.0 to draw my yellow solid horizontal lines across the scale of my pane. I use an oscillator indicator on the close/simple short period 5, long term period 13, signal 6. But I have checked the oscillator check box...so I choose a hollow histogram. This was overlayed with the 5,13,6 continuous line indicator. Perhaps my Indicator is wrong?

Michael B.

Scrutch · Mar 11, 2003

Quote from ElectricSavant:

Scrutch,

I know this is not an explanation to my use of est.

Perhaps my Indicator is wrong?

Michael B.
More...

On the est I wasn't just picking you out Michael, seems everyone quotes this thing in est and I was just wondering why since it's traded from the CME...

I think you might want to check your histogram indicator. I use eSignal and they have the MACD with a histogram. That's what I used to check my setup with. I'm using MetaStock and they do not provide a way to set up the histogram in the MACD and it took me a bit of experimenting to get this thing down... I seem to agree with the time and value that has been posted here recently though.