The Stochastic Indicator

Discussion in 'Technical Analysis' started by jack hershey, Feb 17, 2003.

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  1. Ftrader

    Ftrader

    Jack, thank you for your work on this forum.

    Ftrader
     
    #451     Mar 22, 2003
  2. vorzo

    vorzo

    Jack,

    Thanks for addressing my questions. As promised, I'm back with more today after reading the thread up to page 39. It took me four hours, but it was worth it - I see the method in its intended perspective now, and even beyond that, the rhythm of the market throughout the day. Thanks to all for posting their results and charts.

    So here are my questions on the stuff that I've read so far (I apologize if they were already answered, but a little repetition will only reinforce some, IMO, important facets). The questions go to the others following the thread too.

    1. 1 min chart for prorating: do you have stochastics and MACD on this chart as well? Same settings? What do you base your decision on - price action with S/R levels, or indicators? I'm inclined to keep this simple, since it is a "helper signal " not a main one - so price action and S/R only.

    2. What are the 3 levels of volume?

    3. Is there a difference between congestion, convergence and centering or are they used as synonyms?

    4. When do you practice the wash trades at the beginner level? My understanding is during the low volume period - which stochastic settings do you use for entry?

    5. What is the mysterious KISS?

    I haven't seen many backtesting results posted, so I'll post mine soon.

    Good trading tomorrow!
     
    #452     Mar 24, 2003
  3. vorzo

    vorzo

    dawg,

    Since you are posting charts daily, here's a nice utility that I use to get high quality .gif files (courtesy of nihaba).

     
    #453     Mar 24, 2003
  4. dawg

    dawg

    thanks i will check it out.:)

    dawg
     
    #454     Mar 24, 2003
  5. Thanks so much. I have been trying to learn how to get acceptable charts for ET.
     
    #455     Mar 24, 2003
  6. I parsed this below. look for ****'s.


     
    #456     Mar 24, 2003
  7. colina

    colina

    This stuff is gold. Thanks everyone contributing to this thread. I'm learning tons here, and have a long way to go, am only paper trading. I still can't get over my own psychological barriers, lol.

    (THIS IS GREAT)

    I would like to ask a question(s) about stop lists.

    Using todays' trading log for ES03M as the scenario:

    At Market opening:
    - Open gap down (~ 7 pts) outside last days' trading range
    - all stocs < 25 %

    - 9:48 am est sync between spx.x and es
    (at least moving in tandem)

    - 9:55 ENTRY
    15 min macd diverging below neutral
    5 min macd diverging below neutral
    1 min macd return to neutral about to xovr and
    head back down

    1 min volume diminishing with mini fbps
    forming on all three indexes es,nq,dj
    ( or at least top of price bars pulling down)

    all sectors of market map red
    all quote sheets red

    - 9:59 (high anxiety)
    - 10:07 (high anxiety)
    - 10:15 (high anxiety)

    Channel forms with left and right trend lines
    stocs holding, slow paced relax a little

    - 10:38 pace picks up with ~ 7k/1 min volume spike
    hitting lt line

    - 10:40 trends' peak volume ~17k (?) on 5 min chart

    - 10:50 broke rt line but stoc held below 25 %
    still oversold

    - 11:12 volume diminishing then kicks in, pace picks up
    retesting and breaking support level formed within
    previous channel drawn

    - 11:20 EXIT
    stoc(14,(1),3) broke above 25 % preceded with a nice
    mini ftp formation on 1 minute.
    Exit according to beginner mind set! and use only 1 contract!

    QUESTIONS
    9:55 to 11:20 is an eternity. So what stops to pick and choose
    along the way ?

    What was the trends ' pace ? was the tape on 5 min / 15 min ?

    Given the pace how far back should I go in price bars to
    choose stops ?

    (thanx in advance)
     
    #457     Mar 24, 2003
  8. Hi colin,

    Thanks for posting.

    The gap down open caused a late synch as you noted.

    Also notice how as the old data is used up the relative indicator (14,1,3,goes from relatively smooth to a rougher performance. Use 10:45 for befora and after dividing time.

    For the period after synch to trend end you had a particularly fast pace as shown by AWAY on MACD and by rocket on the Stoc.

    beginner rockets entered at about 877+/- and 867 +/-. If there is any descretion in their effort they did more or less. It doesn't matter. The "tape" was on 5 min during this time.

    The tape went to 15min at 10:45 and if you moved to the 15, you are exiting around 13:30 to 13:15price is around 866 so staying in get one more point and you endure risk.

    We are at centering of a lateral sequence of congestion convergence and centering. to enter now as an intermediate or expert you use volume BO first, MACD BO second (off neutral) and Stoc BO off 50%.the bracket centering value is 866.

    you see it can go either way and who cares. Getting the spread for the bracket is done to keep you out of the failure to BO range of possible values. THe trade you do not take gives you your first trailing stop.
     
    #458     Mar 24, 2003
  9. nkhoi

    nkhoi


    colina, post your chart using browse window located below reply box, see pic
     
    #459     Mar 24, 2003
  10. QUOTE]Quote from colina:

    [
    QUESTIONS
    9:55 to 11:20 is an eternity. So what stops to pick and choose
    along the way ?

    What was the trends ' pace ? was the tape on 5 min / 15 min ?

    Given the pace how far back should I go in price bars to
    choose stops ?

    (thanx in advance) [/B][/QUOTE]

    This is second try the first one disappeared as I moved it to ET.

    I will change machines for this., It will come in under Liz’s machine name but he is not doing the post. I am dictating it..
     
    #460     Mar 24, 2003
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