ES Journal Archive (2006 - 2008)

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Here is a 1 minute chart of last Fridays action featuring Slow/Fast Stochastics, some trend lines. I am more inclined to believe that Stochastic is one of THE primary indicators of O/B-O/S levels during the day. If you think about it, you have your S/R lines (lots of them), but how do major players pinpoint the level at which the price has reached a temporary extreme level? I know that Stochastic is not "bullet proof", it does become a lot more reliable when one combines it with other confirmations and of course experience. In my experiences stochastic, if read properly, offers good overall signals of O/B-O/S intaday levels, we are talking 1-2 point plays, which sometimes do lead to more gains.

EDIT: changed the chart
 

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Quote from romik:

Here is a 1 minute chart of last Fridays action featuring Slow/Fast Stochastics, some trend lines. I am more inclined to believe that Stochastic is one the PRIMARY indicators of O/B-O/S levels during the day. If you think about it, you have your S/R lines (lots of them), but how do major players pinpoint the level at which the price has reached a temporary extreme level? I know that Stochastic is not "bullet proof", it does become a lot more reliable when one combines it with other confirmations and of course experience. In my experiences stochastic, if read properly, offers good overall signals of O/B-O/S intaday levels, we are talking 1-2 point plays, which sometimes do lead to more gains.

EDIT: changed the chart
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Notice how the circled areas have a second lower peak including the last one which you didn't circle the second peak. This is a main part of my trading when I use that with regard to RSI.
 
Quote from romik:

Here is a 1 minute chart of last Fridays action featuring Slow/Fast Stochastics, some trend lines. I am more inclined to believe that Stochastic is one the PRIMARY indicators of O/B-O/S levels during the day. If you think about it, you have your S/R lines (lots of them), but how do major players pinpoint the level at which the price has reached a temporary extreme level? I know that Stochastic is not "bullet proof", it does become a lot more reliable when one combines it with other confirmations and of course experience. In my experiences stochastic, if read properly, offers good overall signals of O/B-O/S intaday levels, we are talking 1-2 point plays, which sometimes do lead to more gains.

EDIT: changed the chart
More...

there are longs here as well that you didn't circle where the second trough was higher
 
I know that one could see quite a few other opportunities looking at the chart, I circled my actual entry points, as you know it is pretty hard to see all possibilities while trading, that's why I will be looking for a business partner at some stage in the future.

EDIT: Also regarding lower peaks, I mainly look for price action formations taking slow stochastic to O/B-O/S areas and reversing, though I must admit that after initial trend has been established I do not wait around for the reversal. I do understand what you are referring to though, but I suppose these lower/higher peaks work best in divergence situations.
 
Quote from romik:

I know that one could see quite a few other opportunities looking at the chart, I circled my actual entry points, as you know it is pretty hard to see all possibilities while trading, that's why I will be looking for a business partner at some stage in the future.
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I understand--I just wanted to point that out if anyone else might be looking at the chart and perhaps that could be helpful.
 
Quote from romik:

Here is a 1 minute chart of last Fridays action featuring Slow/Fast Stochastics, some trend lines. I am more inclined to believe that Stochastic is one of THE primary indicators of O/B-O/S levels during the day. If you think about it, you have your S/R lines (lots of them), but how do major players pinpoint the level at which the price has reached a temporary extreme level? I know that Stochastic is not "bullet proof", it does become a lot more reliable when one combines it with other confirmations and of course experience. In my experiences stochastic, if read properly, offers good overall signals of O/B-O/S intaday levels, we are talking 1-2 point plays, which sometimes do lead to more gains.

EDIT: changed the chart
More...

You came out well ahead on Friday didn't you?
 
Quote from Buy1Sell2:

You came out well ahead on Friday didn't you?
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Yeah, I actually booked more points by scalping, than if I was to hold the position from open-close. It was a great day, doesn't work that well most of the time. I usually try to do around 3 trades on average (1 loss/2 wins is common practise in my books).
 
Very helpful,I'm new YMer and have similar setup (stoch) but using 3min. and 34mda.I use 34 and stoch for confirm.My main trigger is drawn trendline.Trend days make this lots easier to see.Lot's to learn.Thanx all
 
Quote from nampooya:

Very helpful,I'm new YMer and have similar setup (stoch) but using 3min. and 34mda.I use 34 and stoch for confirm.My main trigger is drawn trendline.Trend days make this lots easier to see.Lot's to learn.Thanx all
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Yeah, I think Romik's analysis would work on YM well and probably on many other markets too. Good luck to you!
 
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