Jack Hershey – MACD and Stochastics helpers for 123 and FTT's

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My bigger problem is coming out of the iceberg of the chart that was posted. You come R2R out of the iceberg, going short, but there was nothing there. Good clue was the MACD less than 1.0, -1.0, and the volume was decreasing.

So if you're short at the R2R, when/what is the clue you needed to reverse, not knowing if you're going to have an FBO or not ? Looks like the bottom of that was the new pt. 2 out of the iceberg FTT.

If you're short, you're actually on the right side of the market, but the creep back to the pt. 3 spooks me out, thinking I'm not (on the right side).
 
Quote from jack hershey:


I mentioned that you can fill out the four sheets ahead of time by roughing in the column T, labelled Analysis. Every few rows you put in a line in this order: 1, 2, 3, 4 (VE), 5, FTT (1), BO, 2. etc.

Between odds to evens you have hitches stalls, and dips, and between evens to odds you have patterns of pennants.
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I understand the logging, but I don't quite understand this part of it. Presuming 1-FTT, 2-BO, then is 3 LTL ??, 4-VE, is 5 a non-dom retrace ? Not quite getting this, wondering if someone could post an example of this.
 
Quote from northchuck1:

My bigger problem is coming out of the iceberg of the chart that was posted. You come R2R out of the iceberg, going short, but there was nothing there. Good clue was the MACD less than 1.0, -1.0, and the volume was decreasing.

So if you're short at the R2R, when/what is the clue you needed to reverse, not knowing if you're going to have an FBO or not ? Looks like the bottom of that was the new pt. 2 out of the iceberg FTT.

If you're short, you're actually on the right side of the market, but the creep back to the pt. 3 spooks me out, thinking I'm not (on the right side).
More...

Quote from northchuck1:

I understand the logging, but I don't quite understand this part of it. Presuming 1-FTT, 2-BO, then is 3 LTL ??, 4-VE, is 5 a non-dom retrace ? Not quite getting this, wondering if someone could post an example of this.
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NC1, I'm not sure. These are good questions and worth delving into. The log confounds me right now, but it's about time to just start posting a few and maybe Jack can fix them up when he gets back from his trip. There are some old ones we can dig up.

Before today, I was only looking at the +/- .4 in the context of rockets. Thanks for suggesting another way to use it.

Will reply to you with some potential answers and maybe we can all figure these things out in the meantime.
 
Quote from Padawan:


Can someone explain "the shadow" of the STOCH a little more? Another area of difficulty for me is seeing the fast STOCH flapping back and forth on both sides of the 50 line on some bars. How do we deal with that? Thanks!
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I didn't study Jack's iceberg method fully.
But my guess is "the shadow" is the price range in a specific period of time. Think of stoch level as (dynamic) Fibonacci level, it gives guide lines for short term retrace. When the price cross 50% Fibonacci, it does mean something, but do we treat every cross the same? We don't.
 
Quote from northchuck1:

My bigger problem is coming out of the iceberg of the chart that was posted. You come R2R out of the iceberg, going short, but there was nothing there. Good clue was the MACD less than 1.0, -1.0, and the volume was decreasing.

So if you're short at the R2R, when/what is the clue you needed to reverse, not knowing if you're going to have an FBO or not ? Looks like the bottom of that was the new pt. 2 out of the iceberg FTT.

If you're short, you're actually on the right side of the market, but the creep back to the pt. 3 spooks me out, thinking I'm not (on the right side).
More...


Ok, just based on my observations from that example, we never had a MACD crossover going up. Also, by the time the fast STOCH was crossing up past its 50 line, the slow STOCH was creeping below its 50 line. And just when it looked like price was going to head back up after coming close to the 20 SMA, we had a pennant formation and the fast STOCH dipped back below the 50 line again (it's close, but looks like a reading of 49 on my charting software). We never got the increasing black volume surge to confirm a possible fbo of the 20 SMA. Instead, the volume surge turned out to be increasing red, right after the pennant.

Anything you think I'm adding, imagining or leaving out? I'm not sure what's most important. Comments welcome.

Attached is a snip showing the area I'm referring to. It's possible I misinterpreted the exit of the iceberg (hopefully real icebergs will still be around if people read this in a few years). Going over these charts (the right or wrong way) is heightening awareness. Hope this helps.
 

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Quote from jack hershey:

...A major logging activity is looking at the price come to the R or S and what follows after that. These times, from the hitting R or S and until the next price move is made, is a time to have a well designed STOCHASTIC WORKING FOR YOU. We see it is in a non dominate traverse, the only place where pennant patterns ever occur...

...By soaking this up as a consequence of logging all of these considerations and monitoring observations, we get to see how to design a STOCH to give us a hand...

..If we do , then we can use it anywhere this pattern occurs...

...We shorten the function as seen with the 5, the 2 and the 3. This means we can "see" patterns and especially pennamts on non dominants. and we can "see" Hitches, stalls, and dips on dominants. Doms and non doms refer to traverses INSIDE of channels. We see that we can bear down here and deal with level 1 stuff...

...SO, IF THE FAST LINE OF THE FAST STOCH IS CROSSING 50%, WE SEE THAT THE ACTION IN THE SHADOW HAS A TENDANCY TO BE GOING SOMEWHERE ON LOWER VOLUME...

[/B]
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Here's a little log info stored on my computer along with a doc I found on how to do the log. If I remember correctly, there are several logs posted in The Stochastic Indicator Thread as well as the Jack Hershey Trading thread and elsewhere.
 

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