The Stochastic Indicator

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

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  1. I just found this thread. It seems like there is some incredible info here, but..... I"ve tried starting from page 1 over and over again and it seems like it's not really the beginning of the thread.

    Any enligntenment appreciated.
     
    #771     Jun 16, 2003
  2. thanks hit n run,

    those help a lot. One recurring question is do you enter on closes or during the bar once the trigger points are hit. Even though these questions are answered, I"m just not picking up on the nuances of the answers.

    In particular, if you enter when the slow stochastic just hits 80 (or 20) and you use that as the signal, that fast line is almost guaranteed to at least momentarily bounce back out of the over 80/under 20 area.

    Am I just totally missing the obvious? I tried a couple of these trades yesterday, got stopped out for small loses, but went back to look at the charts, and the trades should have worked. It's the intrabar values that cause the problems. At least it seems that way.
     
    #773     Jun 17, 2003
  3. dawg

    dawg

    when to enter or exit ?

    when i was just starting to trade rockets this is how i went about it:

    to enter: when both fast and slow on a closing basis were above 75 stoch i would enter a long above the high of that 5m bar.

    to exit: when the fast closed below 75. i would exit below the low of that 5m bar.


    not saying this is the best, but it helped eliminate some emotional decision making and avoiding some whipsaws.

    i only look at the stoch on a closing basis...otherwise you get whipped too much.
     
    #774     Jun 17, 2003
  4. Bundlemaker

    Dawq explained his way, and he did quite good. dawq is using 25/75 . I still dont know what is better, 25/75 or 80/20.

    hershey takes the trade immediately when both stoch lines are above/under 80/20, and MACD is =/- .40
    dont forget the volume and no trades in the deadzone.

    Dawq

    glad to see you back on board. sorry to hear about your private problems. hope everything will work out well for you.
     
    #775     Jun 17, 2003
  5. Thanks guys, this is helping a lot.

    I understand that Jack takes them immediately. Is it your understnading then, that if the fast line even momentarily dips below 80, above 20 that you exit? My experience with doing that is you get whipped out every time.

    Also, can you summarize the volume rules and "dead zone". It's tough sorting through 100 plus pages, I'd really appreciate it.
     
    #776     Jun 17, 2003
  6. Here are 2 trades from yesterday (6/160 that I took. Tear them apart....I'd rather look dumb than be poor.

    short ES 12:45 @ 1002.50
    exit 12:45 @ 1003

    short ES 12:47 @ 1002.25
    exit 12:48 @ 1003.25
     
    #777     Jun 17, 2003
  7. bundlemaker

    there is more than one possibility for exit. I would say, read first all hershey postings, and then start to trade.
    and like Jack said -learning by doing- and a lot of washing:D

    deadzone for me is 11:30 am to 02:00 pm and thats the time when volume starts to go down
     
    #778     Jun 18, 2003
  8. first trade today:

    long ES at 11:05:07, 1010.75
    xxx at 11:14:59 1009

    then it took off, how much room do I need to give these trades?
     
    #779     Jun 18, 2003
  9. Hi Vorzo,

    I've been following this thread since the beginning.

    I would like to commend you on the steady detailed contributions you are making here.

    I have a small request: Could you post, along with your daily and weekly stats, a running log of total number of points gained over total number of trades?

    I have a large request: I will soon be in a position to trade at least one contract. Would you be interested in instant messaging your trades as you make them for a percentage of any profits? If so, what % would make it worth while for you?

    For you, this could be an opportunity to learn more. For me, it could be an opportunity to not lose any money, while learning more. I would like to get into the market using a curb on the emotional aspects until I get relaxed.

    It could also be a way for you to raise your stake. It's an intermediate step.

    I currently have the money and almost the time. I just need to get wired and get the appropriate software and services.

    Thanks,

    JohnnyK
     
    #780     Jun 18, 2003
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