Spydertrader's Jack Hershey Equities Journal II

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Quote from gooch87:

Hi dougcs,

If the MACD is set up like this EM1=5 EMA2=13 Smooth=6 then maybe you need backfill the chart so that the MACD carries over from the day before.
G87
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G87,

I was using the wrong coefficients, so now I agree with you that NTRI was a trade today. But for some strange reason, my Tradestation code did not show the entry. All conditions were met for an entry at the open of the 930 AM bar (CST), meaning the trade should have triggered shortly after 900am.

Here is a little print out from my code to the EL output bar:

NTRI count= 12.00

900.00 AM Bar
timeOK= TRUE
CDuv= TRUE
cstoch= TRUE
Cmacd= TRUE
OK2Buy= TRUE
cfrv= FALSE OKfrv= FALSE
du= 106002.25 SK = 82.40
macd= 0.07 sig= 0.05 diff= 0.02
vcum= 196697.00 YC= 34.64 lstClose= 35.28

This shows all conditions are met:
timeOK means it is before 10 am CST
CDuv means the DUV has been exceeded
cstoch means stochastic is above 80
cmacd shows the macd difference is greater than zero.
OK2Buy means entry takes place the next bar if price exceeds yesterday's close which it did.

Some of the other stuff:
cfrv means the condition for an anytime entry when FRV is exceeded .
sk is the stochastic
macd is MACD, etc for the rest of that line.
DU is the DUV
vcum is the volume so far today
YC is yesterday's close
Lst close is the close for this bar 900 am in this case

This has me puzzled as I should have got an entry.

DS
 
Actually, we are trading the dynamics and not the settings so I suspect all the MACD and stochastics settings won't make too big a difference in the long run. :confused:
 
Quote from martys:

My MACD was positive too.
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I also went long NTRI on STOCH(14,1,3) > 70 and a positive MACD(5,13,6). The STOCH indicator reversed after my entry and by the end of the 15 minutes period it was lower than 70, which could explain why other fellows here did not enter the position.

The important point IMO is to make sure that the stock is showing strength at the time of the entry. Looking at the 5 minutes chart at the time my buy signal was generated around 10:00, I can see that NTRI broke down a first time at 9:45 from $35.33 and it never made it back to that point. Price actually formed a descending triangle, not a very bullish sign.
From now on I'm going to use 30min charts for STOCH/MACD potential buy signals but time my entry on a 5 minutes chart.

Another thing I noticed is that if you change the time template from 24H to 9:30-16:00 you'll have different STOCK/MACD values, because the overnight bars will be excluded from the indicators formula.
I'm going to use a market hours time template from now on.
 

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Quote from martys:

Hi gooch87,

I am not questioning your chart... Actually I also suspect the stochastic level too because I did not look after my order was in already for the better or for the worse. In the cheat sheet, SpyderTrader mentioned stochastics and I assume it is the fast stochastics which is the original stochastics. The slow stochastics?? showing on your chart is coded later on for people who want things a little smoother. My assumption could be wrong??
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Hi martys,
I have learned the hard way to never enter a position unless the MACD is positive, the lower DU is made and the SLOW stoch is above 80. Some people go in early some late but I am just trying to follow the rules while I am still in the learning curve. I suspect that I am shark bait in the ocean though.:p

G87
 
Quote from gooch87:

Hi martys,
I have learned the hard way to never enter a position unless the MACD is positive, the lower DU is made and the SLOW stoch is above 80. Some people go in early some late but I am just trying to follow the rules while I am still in the learning curve. I suspect that I am shark bait in the ocean though.:p

G87
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Thanks. I will put up slow stoch too and compare.
 
Quote from il ganzo:

I also went long NTRI on STOCH(14,1,3) > 70 and a positive MACD(5,13,6). The STOCH indicator reversed after my entry and by the end of the 15 minutes period it was lower than 70, which could explain why other fellows here did not enter the position.
More...

Quote from gooch87:

Hi martys,
I have learned the hard way to never enter a position unless the MACD is positive, the lower DU is made and the SLOW stoch is above 80. Some people go in early some late but I am just trying to follow the rules while I am still in the learning curve. I suspect that I am shark bait in the ocean though.:p

G87
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Ooops, I was using the wrong parameters. STOCK(14,1,3) %K > 80 is the right one. Thanks!
The other observations in my previous post are still valid.
 
Quote from dougcs:

G87,

I was using the wrong coefficients, so now I agree with you that NTRI was a trade today.

DS
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This was not a trade today for me according to my charts. Also I use a slow stoch indicator.

I hope this helps
G87
 
Quote from ilganzo:

Ooops, I was using the wrong parameters. STOCK(14,1,3) %K > 80 is the right one. Thanks!
The other observations in my previous post are still valid.
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So when the stochastics are set up properly we monitor the %D line on the chart to be > 80 for a "go" signal.

G87
 
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