The Stochastic Indicator

Thanks for your comments, Jack.

Things are moving along quite nicely because of your efforts.

Have a great weekend.

 

I am putting some additional "insight" in your hip pocket with this.

for two days we have had some really strong stuff in the market environment. You will see some threads start up to deal with it soon when people catch on.

We always have our eyes pealed.

When you set up channels and see the price driving against it on the "away" side, then there is news coming that reinforces the trend. It is not quite on the street.

I have more citations with equities that come from BO's but it is not impossible to stay out of trouble if you add to holdings when the "away" side is really going well (pushing the envelope) See "climax runs" in googling.

Yesterday we went into "long" push. Today it has been a "short" push. Our tool box handles this. You can actually see icarus post on this biginning of the "short" push.

We all know the news basis for this which is OT here.

In commodities there are producers and comercials. for futures indexes the financial industry is a "commercial". Their "puts" can really push "short" trends under way.

 

Icarus picked this off in his chart right at the beginnig of it.

 

1. I was still in quasi slaloming mode. BUT, I ALWAYS LOOK FOR VOLUME SPIKES. especially after midday. Jack stresses the PM start using volume as the indicator.

2. Yes, i was short as soon as volume spike down. I was looking for stochs to go to a continuation mode(which occured).

3. Yes, i did cover my short and reversed long because it failed to traverse the channel on the second pt 3. Jack again stresses this as the end of continuation mode. Turning into sloloming mode.

4. In this case, i was still long from failure to traverse, then i shorted at top of ccc, then i covered and got long at bottom of ccc. The objective is to get short and long every traverse(many traverses) of the ccc.I still am not Exactly sure where the top and bottom of the ccc is but i have an inkling that it happens at market opertaing points. Market operating points to me(not clear to me yet) are points like the first poit3, second point3 , low of the day, high of the day, the point at which the price reverses to the other side of the channel, points where there were previously turning points, etc...

I hope jack adds slaloming too our tool box beacuse i am not sure where exactly to get short or long in the ccc. sometimes i get short at the wrong point, see it go up 10 cents to the next operating point(1st pt3), only to be the top of the ccc and then going down to whre i thought it would originally have gone. I thnk volume has a lot to do with finding the right opearting point but i am sure jack is going to enlighten us when the time is right.

Just some more thoughts on operating points. I think operating points are thier to be either change(reversal) or busted through(continuation). i think volume is what shows us what the market wants to do. I am still unclear about opearting points so this may be wrong.

Friday was my best day ever trading the spys. I made a 149 cents or 15 pts. This is not typical of what i have done but i hope more days like these are too come. I jsut want to thank jack again for his generosity of sharing knowledge.



jc

 

I am using this computer for the weekend and I have begun the tool box etc. I misplaced one subsection and I replaced it but it disapeared. I replaced it as the last entry for today.

I have tried to kill about three posts using a reason (cleanup the journal); so far it has not worked.

In the stuff I put there I suggesthowto print and maintain the organization for quick reference. The plan is to number my posts at the top of each and put the page of the ET journal where it appears. By keeping two three ring binders we can create a quick reference system and also have a binder organized logically like a book.

I will be transferring stuff from this thread into the journal as time passes; it will be editied before it appears.

It will be standard for me to request that stuff from others be killed there to make it easier for us to corrdinate compiling the binder sets. I do not think it will work probably because i already had one post I needed disappear and three that I wanted killed have not been.

I will be adding illustrations as well. I requested that some things from the "Catchup" journal be printed and inserted as well.

If you delay setting up the binders you probably will not be able to keep up when I get rolling.

I may post a table of contents using ET pages and my post #'s if it gets too messy.

bubba7 is my alternate computer.

 

Time is still in short supply
Traded Thu and Fri - paper of course

Thu
#1 long rocket 10:03 977.50
10:18 sell 977.00 failure to traverse -> down vol picking up
-0.50

#2 failed rocket -> MACD reversal
10:31 short 974.75
10:46 cover 974.25 intrabar rocket failed at 10:35 -> failure to traverse
+0.50
Hesitated with entry because MACD x occured after rocket failed.

Day 0.00


Fri
#1 long rocket -> hod bo
10:28 long 985.00
11:11 sell 986.50
+1.50

#2 short rocket
13:30 short 980.75
13:53 cover 974.75 failure to traverse. What a selloff - tape was on 5m, channel on 1m
+6.00

Day +7.50

Week: 2 days/4 trades/+7.50

 

Jack, thank you for your continuous efforts to share your knowledge. Your journal is gold to anyone who understands it and has the discipline to apply it.

You pointed out that you will emphasize on areas that are less understood by people who use your method.
One such area is the stop log - it's not mentioned too often by people posting here; I have a mixed understanding of it.

In the journal you say that stop log should be kept on the trading fractal, and that it's primary function is to protect capital against unexpected events. Consequentially, stops are rarely triggered and they are by no means used to take us out of the trade under "normal" market operation.
While I understand the way to determine the offset of the stops and the periodicity of recording them, it's unclear to me where to record them.

Can you expand on the price formations - do you mean lows/highs/centering for the current channel or trend. Also, should the stop be AT the price formation or 1-2 ticks away?

You mentioned in a recent post that you had surgery - I wish you quick recovery and great health. This makes what you are doing here even more admirable.

Thank you,
vorzo

 

nwb, you made some fine points on operating points
Not sure if that's what Jack means by operating point though - in the journal he defines it as the curent point in the market.
Jack it'd be great if you can elaborate on this.

Nice day, nwb. Question: why do you trade spy instead of es. Also you seem to trade on the 1m?

Thanks,
vorzo