Mental Case

[Sprout]

Here the chart. Tradestation has three Stoch indicators. Fast, Slow and Double slow. I used Fast and Slow. Let me know which you would recommend.

hmm, doesn't look right.

Switch the last two numbers to

5,2,3
14,1,3

Here's some background info to enrich your experience.
The Stochastic Indicator

Once we have your display right, we can start annotating,...

 

[truber]

Here is the new chart.

Thanks

 

[Sprout]

Yes, that looks right.

Make this refinement
Put the 50 line on the 5,2,3
Put the 20,80 line on the 14,1,3

Now, go back a period of time to start. Every time the 5,2,3 crosses the 50, place a vertical line. If it's dropping from the top panel to the bottom panel have the line be red.
If it's rising from the bottom panel to the top have the line be green.

Doing this on the signal line is an earlier entry than doing this on the stoch line. Just pick one and be consistent.

Next, look at the 14,1,3
Do the same vertical lines but with this one do it AFTER the placement of the entry signal. Where this gets placed is when the Stoch line EXITS the overbought and oversold region of the 20,80 lines.

In other words, 5,2,3 crosses the 50 from the lower region, place vertical green line (entry). If this move continues to be dominant, than look at the 14,1,3 and (hold) until it exits the overbought region of the 80 line. (exit)

Then the 5,2,3 crosses the 50 from the upper region, place red vertical line (entry). If this move continues to be dominant than look at the 14,1,3 and (hold) until it exits the oversold region of the 20 line. (exit)

Next go through from your starting point, log bar-by-bar. If you are not trading intraday, use the 30min. If intraday then the 5min.

Fill in your log.

Print chart and log, messy is ok. Notice what you notice. Log questions that come up as well as insights deduced. Put this in a 3-ring binder. This will build your long term memory as well as providing a never-ending resource to build a solid foundation upon.

Post the chart and log.

Next we look at the MACD.

 

[truber]

Yes, that looks right.

Make this refinement
Put the 50 line on the 5,2,3
Put the 20,80 line on the 14,1,3

Now, go back a period of time to start. Every time the 5,2,3 crosses the 50, place a vertical line. If it's dropping from the top panel to the bottom panel have the line be red.
If it's rising from the bottom panel to the top have the line be green.

Doing this on the signal line is an earlier entry than doing this on the stoch line. Just pick one and be consistent.

Next, look at the 14,1,3
Do the same vertical lines but with this one do it AFTER the placement of the entry signal. Where this gets placed is when the Stoch line EXITS the overbought and oversold region of the 20,80 lines.

In other words, 5,2,3 crosses the 50 from the lower region, place vertical green line (entry). If this move continues to be dominant, than look at the 14,1,3 and (hold) until it exits the overbought region of the 80 line. (exit)

Then the 5,2,3 crosses the 50 from the upper region, place red vertical line (entry). If this move continues to be dominant than look at the 14,1,3 and (hold) until it exits the oversold region of the 20 line. (exit)

Next go through from your starting point, log bar-by-bar. If you are not trading intraday, use the 30min. If intraday then the 5min.

Fill in your log.

Print chart and log, messy is ok. Notice what you notice. Log questions that come up as well as insights deduced. Put this in a 3-ring binder. This will build your long term memory as well as providing a never-ending resource to build a solid foundation upon.

Post the chart and log.

Next we look at the MACD.

Here is the updated chart, using KRE. I wont be able to do the log until Friday as I need to travel for my paying "hobby" training sales folks.

Admittedly I am a new trader, only consistently trading for a couple of years with marginal success. I haven't lost it all! Being in the technology industry for a long time including coding, I understand math and stats pretty well. I can make coding changes to indicators in Easy Language and have done so for many. I have looked at stoch and have done some research on it a while ago but just couldn't trade it very well. I am more comfortable using %R and RSI. They make more sense to me. That said I am open minded and thanks for your follow up. More to come on Friday.

 

[truber]

Yes, that looks right.

Make this refinement
Put the 50 line on the 5,2,3
Put the 20,80 line on the 14,1,3

Now, go back a period of time to start. Every time the 5,2,3 crosses the 50, place a vertical line. If it's dropping from the top panel to the bottom panel have the line be red.
If it's rising from the bottom panel to the top have the line be green.

Doing this on the signal line is an earlier entry than doing this on the stoch line. Just pick one and be consistent.

Next, look at the 14,1,3
Do the same vertical lines but with this one do it AFTER the placement of the entry signal. Where this gets placed is when the Stoch line EXITS the overbought and oversold region of the 20,80 lines.

In other words, 5,2,3 crosses the 50 from the lower region, place vertical green line (entry). If this move continues to be dominant, than look at the 14,1,3 and (hold) until it exits the overbought region of the 80 line. (exit)

Then the 5,2,3 crosses the 50 from the upper region, place red vertical line (entry). If this move continues to be dominant than look at the 14,1,3 and (hold) until it exits the oversold region of the 20 line. (exit)

Next go through from your starting point, log bar-by-bar. If you are not trading intraday, use the 30min. If intraday then the 5min.

Fill in your log.

Print chart and log, messy is ok. Notice what you notice. Log questions that come up as well as insights deduced. Put this in a 3-ring binder. This will build your long term memory as well as providing a never-ending resource to build a solid foundation upon.

Post the chart and log.

Next we look at the MACD.

Here is the interday 5 min.

 

[truber]

Yes, that looks right.

Make this refinement
Put the 50 line on the 5,2,3
Put the 20,80 line on the 14,1,3

Now, go back a period of time to start. Every time the 5,2,3 crosses the 50, place a vertical line. If it's dropping from the top panel to the bottom panel have the line be red.
If it's rising from the bottom panel to the top have the line be green.

Doing this on the signal line is an earlier entry than doing this on the stoch line. Just pick one and be consistent.

Next, look at the 14,1,3
Do the same vertical lines but with this one do it AFTER the placement of the entry signal. Where this gets placed is when the Stoch line EXITS the overbought and oversold region of the 20,80 lines.

In other words, 5,2,3 crosses the 50 from the lower region, place vertical green line (entry). If this move continues to be dominant, than look at the 14,1,3 and (hold) until it exits the overbought region of the 80 line. (exit)

Then the 5,2,3 crosses the 50 from the upper region, place red vertical line (entry). If this move continues to be dominant than look at the 14,1,3 and (hold) until it exits the oversold region of the 20 line. (exit)

Next go through from your starting point, log bar-by-bar. If you are not trading intraday, use the 30min. If intraday then the 5min.

Fill in your log.

Print chart and log, messy is ok. Notice what you notice. Log questions that come up as well as insights deduced. Put this in a 3-ring binder. This will build your long term memory as well as providing a never-ending resource to build a solid foundation upon.

Post the chart and log.

Next we look at the MACD.

Is there a particular stock or type of stock you would recommend to do the chart and log on?
Thanks
/truber

 

[truber]

Yes, that looks right.

Make this refinement
Put the 50 line on the 5,2,3
Put the 20,80 line on the 14,1,3

Now, go back a period of time to start. Every time the 5,2,3 crosses the 50, place a vertical line. If it's dropping from the top panel to the bottom panel have the line be red.
If it's rising from the bottom panel to the top have the line be green.

Doing this on the signal line is an earlier entry than doing this on the stoch line. Just pick one and be consistent.

Next, look at the 14,1,3
Do the same vertical lines but with this one do it AFTER the placement of the entry signal. Where this gets placed is when the Stoch line EXITS the overbought and oversold region of the 20,80 lines.

In other words, 5,2,3 crosses the 50 from the lower region, place vertical green line (entry). If this move continues to be dominant, than look at the 14,1,3 and (hold) until it exits the overbought region of the 80 line. (exit)

Then the 5,2,3 crosses the 50 from the upper region, place red vertical line (entry). If this move continues to be dominant than look at the 14,1,3 and (hold) until it exits the oversold region of the 20 line. (exit)

Next go through from your starting point, log bar-by-bar. If you are not trading intraday, use the 30min. If intraday then the 5min.

Fill in your log.

Print chart and log, messy is ok. Notice what you notice. Log questions that come up as well as insights deduced. Put this in a 3-ring binder. This will build your long term memory as well as providing a never-ending resource to build a solid foundation upon.

Post the chart and log.

Next we look at the MACD.

Also, using the bars instead of the candle sticks is awesome. Things are very clear! I dont know if this is intended, but trends, support and resistance jump right off the chart. Thank you. Converting to bars!

 

[Sprout]

Is there a particular stock or type of stock you would recommend to do the chart and log on?
Thanks
/truber

There is a way to build a HQ universe of stocks to trade.

However for this exercise, it's better if you use stocks that you have been following. This way we can add perception to something that you have been watching but have not perceived before.

Also, using the bars instead of the candle sticks is awesome. Things are very clear! I dont know if this is intended, but trends, support and resistance jump right off the chart. Thank you. Converting to bars!

 

[truber]

There is a way to build a HQ universe of stocks to trade.

However for this exercise, it's better if you use stocks that you have been following. This way we can add perception to something that you have been watching but have not perceived before.

Here is the chart. I combined the Fast and Slow Stoch into one indicator using the Fast (5,2,3) oFastK and the Slow (14,1,3) oSlowD. Green line when Fast Stoch FastK crossed over center line and Red line when Slow Stoch crossed under the Over bought line. I have setup Alerts for this. I will build a TradeStation Strategy on this to back test it as well.
It got a bit choppy in the middle there, but other wise descent runs in each direction.

 

[Sprout]

Interesting idea.
However by doing it that way, we lose sight of the goal which is observing sequences. After you log sequences from having the indicators separately you will have more granularity to observe change before the crossovers.