The Stochastic Indicator

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

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  1. vorzo

    vorzo

    Today's trades:

    #1 long rocket; pos numbers (I have Briefing thanks Banjo, was trying to trade without news but I got burned a few times and decided to check economic reports)
    9:46 long 947.00
    9:52 sell 947.50 rocket failure -> down vol rising. Should've known better to take profits quickly or stay out.
    +0.50

    #2 short rocket
    10:02 short 942.75
    10:27 cover 938.75 failure to traverse
    +4.00

    #3 VDU BO -> rocket
    11:43 long 942.00
    11:46 sell 941.75 BO failure
    -0.25

    #4 long rocket
    12:31 long 942.50
    13:15 sell 944.00 channel BO -> MACD x
    +1.50
    Didn't trade in the afternoon.

    Day +5.75
    Week/17 trades +13.00
    Much better than last week although I don't feel fully confident yet. Market was tougher this week, rangebound and undecided. Lots of change, little continuation.

    28 days/75 trades +92.00
     
    #731     May 16, 2003
  2. Magna

    Magna Administrator

    Vorzo,

    Congrats on a nice day. A question or two:
    As the stoch wasn't anywhere near rocket zone, and the macd never got above .24, why did you play this as a rocket? Or did the indicators trigger on a different timeframe (I'm looking at the 5m). If it is a different timeframe (say, the 1m) are you trading off this or simply using it for anticipation?
    Very nice trade.
    Again, it may be a timeframe thing, but on the entry the macd never got above .30ish, even the large bar at 12:45 didn't reach .40. Nice profitable trade, tho, and that's what counts!

    Anyway, good trading, looking forward to you stepping outside the paper-trading zone and doing this with real dollars, even if only 1 contract. Then psychology will step in, and it will interesting to see how that affects your exits.
     
    #732     May 17, 2003
  3. Once again what happened to Jack? It seems like he disappeared again. Last I heard he was revamping the material and moving forward with new info, but it never came. I have seen him post on other threads so I know he still around.. Once he stopped showing up, all his momentum he was building died. I have not seen dawg lately either.
     
    #733     May 19, 2003
  4. vorzo

    vorzo

    Magna,

    It was an INTRABAR signal that doesn't show on the historical.


    Didn't wait for the MACDhist on this one, BO from lateral channel was good enough for me.

    Thanks for the encouragements. I'll switch to one contract live soon. Likely to exit early when I go live - I'll have to work hard on that.

    Good trading,
    vorzo
     
    #734     May 19, 2003
  5. Magna

    Magna Administrator

    Thanks for your answers. I was watching the trend-day on Monday (5/19) and really wondered how you paper-traded it. In the real world, after you're up 4 or 5 pts (which is a substantial gain in the ES) it'd be awful tough not to take your profits when it starts retracing against you, regardless of the indicators. Whereas with "paper" it's no big deal, there's no serious emotional issue, you can try and squeeze every drop out of it.

    A few things Jack said about the subject:
    "Paper trading is insidious in many ways. The antidote is real wash trading.... A very bad mistake to make is paper trading first and then assuming you know a lot so you can just plunge in. You cannot learn the emotional three-quarters of trading using paper trading."

    Anyway, good trading to you Vorzo. Look forward to your trades and hope you and Dawg continue posting.
     
    #735     May 21, 2003
  6. vorzo

    vorzo

    Magna, I was on holiday on Mon (Victoria Day in Canada) so I didn't trade. Didn't trade today either.
    I agree with what you and Jack said about paper trading - it's nothing like live trading where real emotions come into play.
    But it does help achieve one thing - confidence in your trading, and patience - two psychological aspects that are key to success.

    Here's Tue:

    #1 lateral channel traverse - I attempted this after noticing the lateral channel, on bounce off the bottom side.
    10:21 Long 923.25
    10:24 Sell 922.75 failure to traverse -> wash
    -0.50

    #2 short rocket
    10:58 Short 921.75
    10:37 Cover 921.75 MACD convg -> failure to traverse short channel -> wash
    0.00

    #3 lateral channel failure to traverse -> short rocket
    11:07 short 922.25
    11:41 cover 920.75 failure to traverse short channel after pt 3 -> MACD convg
    +1.50
    Should've taken profits at yest low where it failed (10:38 at 919.50)

    Day +1.00
     
    #736     May 22, 2003
  7. vorzo

    vorzo

    Nice morning rally.

    #1 long rocket
    9:54 long 925.75
    9:59 reverse 925.25 realized I entered at away side of yest channel -> traverse to the right side. Reversal was completely uncalled for. My self control must've got weaker because I've been trading less lately.
    -0.50

    #2 reversal on traverse to the right side
    9:59 short 925.25
    10:03 reverse 926.75 bounce off right side -> traverse left -> hod broken. This reversal was called for, maybe a little late.
    -1.50

    #3 long rocket
    10:03 long 926.75
    10:56 sell 932.00 new point 3 -> failure to traverse -> MACD x -> rocket failure. Did this one by the book.
    +5.25

    One stupid mistake cost me 2 pt. If I stayed in from the beginning I would've scored 6.25 on the trade.

    Day +3.25
    Week +4.25

    Dawg, are you still around? Did you nail the morning rally?
     
    #737     May 23, 2003
  8. see attached. this may be second try.
     
    #738     May 23, 2003
  9. vorzo

    vorzo

    Jack, great update. Thanks for your post.

    #1 iceberg -> slow channel pt 3
    10:30 long 930.25
    10:38 sell 929.75 wash on what looked like failed traverse - didn't notice rocket forming ??
    -0.50

    #2 long rocket
    10:39 long 930.25
    11:19 sell 932.25 MACD x -> rocket failing, down vol rising
    +2.00

    #3 rocket reentry
    11:28 long 933.25
    11:33 sell 933.25 wash on failure to traverse channel. This should've been the exit for trade #2
    0.00

    Didn't take any trades for the rest of the day - tight range/low vol heading into the long weekend.

    Day =1.50
    Week +5.75
    A modest week.
     
    #739     May 25, 2003
  10. For rockets it was an am trade .

    For the iceberger's it lasted all day long.

    This is a nice example of a fast trend easing into a steady slower trade.

    there must be a steady flow of money coming into he equities markets.
     
    #740     May 27, 2003
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