The Stochastic Indicator

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I commented just above to fawaz as a back up to trendy's comments to him.

this post continues and corrrolates with the 15 min comments at the bottom of that post.

Beginners on the 5 min are being sure to catch the new trends as a way of hanging in a little longer on trends.

You have a trend running at thestart of the day from yesterday. This three day long short has been adjusted in witdth (the tape thing) occassionally.

The pm developments that start at nominal 13:15 were neat today. The four oclock drift on low low volume (use 5 min for all of this) came to a smooth landing with the Stoc 14,1,3 centering on the 50% and staying out of site behind the 20/80 tape.

You see the right trend line easing on down the line. It's 13:00.

The slow start of the new long trend is set up with some icebergs long. These can be easily slalomed by the nice rhythm they always have. This is intermediate expert stuff we will come to. the clue is trying to get out of the end of the trend with greatest profits (away from the right trend line) that leads to slaloming.

Since the trend tape was on the 15 min and the MACD did it's divergence to the center, that was seen by these folks as the slalom starting gun. Ice bergers would go long and sit tight for the trend start up.

Everyone is doing the point 1, point 2, and point 3 thing as it turns out. And the points came up like clock work; therefore the old "short" trend is gone. It may come back and for sure we will catch it. In the mean time, we are long or slaloming as intermediates or advanced people.

Beginners see that the trend ended and a new one is under way. We are mentally oriented; all of us and we are making money. beginners getting in the three times they did to anticipate rockets, did pull down a profit each time as a better effort than just the usual washing. If you are making nickel and washing you are right there and on the ball as a full time participant in the opportunity that is there for you for your skill and wealth level.
 
Look at your points. look very hard at the volume sequence as you turn in your three ring binder to the first posts I made on trend channels. Take the time to get it out.

See that evdeery time you hit the right trend line the volume is decling. (read the P, V relation "if, Then"). chack off that it works.

Look at the price bounce off the right trend line as the increasing volume pushes profits into your pocket as it traverses to the point 2 side. Watch price poop out on the left side as the volume fails to continue to increase.

You people who are slaloming, just feel how the linked turns are hitting your knees as you posture your bod for the turns. I always did 30 spinnaker jibes on Thursdays off Larchmont or 32A to get ready for the weekend Shields class racing. Shields Senior, boat 25, was sure to be out there single handing on Sunday in those days.

You can groove on all this. you see the trend emerge on three (count 'em) sequences. I can suggest to you that soon you will know what is coming as a trend sets up. If you are hot, you slalom alot.

A while back (years ago) it got so badfor me (meaning good) that my C&R's were like a clock. And if I didn't call, I got a call. All DJXX trading before the mini's. When you have people coattail trading your slaloming you know you are in the groove.

You will be in the groove.
 
12 Mar 03

3 trades

14:05 L @ 793.25, exit 14:15 @ 793.50, +0.25
14:55 L @ 796.75, exit 15:15 @ 799.50, +2.75
15:55 L @ 803.25, exit 16:15 @ 805.50, +2.25

total +5.25
 
THNAKS MR. HERSHEY FOR YOUR BACKUP POST TO ME ... WHICH I APPRECIATE ....

I JUST WANTED TO KNOW IF YOUR METHOD CAN BE APPLIED TO FOREX TRADING ... WHAT I KNOW THAT YOU ARE TRADING HERE S&P IN THIS CASE THE VALUES OF MACD 0.4 AND -0.4 ARE APPLICABLE BUT IN FOREX LET US SAY AT EUR/USD CHART WITH MACD THE VALUES USUALLY ARE TOTALLY DIFFERENT IT IS 4 DICEIMAL PLACES LIKE 0.0043 SO WHAT DO YOU THINK OF POSSIBLE VALUES THEN ?

THANKS
 
Progress...I think

09:46 Short @814.75
10:05 xxxx @814.75

This was an attempt to “fade” the open based on a MACD xo – with a heart full of fear I jumped in, but when the market retraced after being in my favor, I “washed”. In hindsight, I should have hung on, but I am new at this method, and need to “prove it” to my self.

12:10 Long @816.50
01:42 xxxx @820.75

This was entered as an “Iceberg” – based on the 5-2-3 stochastic. The entry was “textbook”, but to be honest, after 4 ¼ points of profit I grabbed them. Outside of the fact that I lost 3 points yesterday, and was looking to get even, there is no logical explanation for the exit.

02:20 Long @822.50
02:42 xxxx @824.50

I hope Jack would be proud of this one – entered as more or less a continuation of the Iceberg I chickened out on. With an uptrend in place, prices pulled back on low volume, the Histogram was putting in a low, and the MACD was poised for a positive xo. I exited when the volume drid up after putting in a new high for the day.

Bottom line” Plus 6.25 points on the day.

While far from a perfect day, I am beginning to understand more and more of the concepts Jack has presented. At this point, I still need a lot of work on just sitting back while the trades do their thing. For me, that’s the hardest part of this method. But to be sure, I am learning to look at the market in a whole new way – thanx Jack.
 
tampa
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Quote from dkm:

see attached
More...


That is a really terrific chart. Just the essentials

The short trend ending is a really important thing to observe. You can see the right line as a continuing "resistance" that was decreasing until finally it was broken.

Often the 13:15 part of the day is where the trends we track have their BO's.
 
General stuff.
We have been getting some really great times here for moving into the groove.

A couple of weeks of really perfect sidelining stuff with flat markets. Here we learned two things:

You only make money when there is a trend.

You stay sidelined to minimize risk in flat markets.

The major key in this start up was to "tape" the 20/80 band.
We also checked out the compound interest formula to see that a minimum steady daily profit did make progress. We did not compound it seriously by adding contracts (the postage stamp curve thing up to this point)

We also had so very good looks at "wash" trading as a way to:

Exit when there is no money to be made. This is done by working at getting out of ice bergs as a beginner who only trades rockets.

We also had a couple of people perceive the timing of a rocket going into congestion and they are doing the slalom trades (short, long, short long, etc) through congestion into the convergence then centering.

Next I introduced how to eliminate the "hair rigger" exiting that was going on. Lots of people have NLP pictures of entering, making money and then holding as it fades and they get into loosing situations. They counter with premature "hair trigger" exits and give up a lot of profits.

What I did was get you to move to slower fractals and use your indicator knowledge and signals to relax you away from the hair trigger. Then I kept you refferring to the 5 min as a standard place to start out.

The second element of this was the points 1,2,3 channel start up lines for your price graph. Once we understood the "right side" and how you see formations end onlt to begin new channels within their endings, we were able to specifically focus on the "hair trigger" syndrome of "what is going on here, now that I m in a trade?" This is the pemature critical point of all critical points. We occupied ourselves with an alternative effort and avoided the premature exit. There weresome great results posted in terms of mental shifts.

The "tape" we learned during this interval was moving to the slowest fractal that "fills" the points 1,2,3 channel with price bars like a child "coloring between the lines". You got to se the indicators and stuff working just like they do on the 5 min beginner stuff.

I mentioned having to set point 3 again like an airplane takes off first steeply and second then at a climb rate to get to cruising altitude.

Several times we have seen trends continue into the next day. Some have gone for three days.

We also have it down on the open and close that there are "end" effects. We trade after the market synchs. We just wait 15 min and then go to work. Some, intermediate and advanced guys, are watching the synch because it is info laden (later posts will get that fixed).

I spent some really valuable time calibrating people too. I think the MACD adjustments I made on Tampa will easily drive him to being a millionaire. The two parts were the "entwined" and the sequence: converge, xo, and diverge.

If you are religious and want to compress getting to being a millionaire, you have to do a couple of things. Do the three ring binder several ways. Ugh. I know you will hate this. But if you do it and say everything out loud, you will see what I mean. Look at next post for this stuff.

Today we move out to complete the fractal theme iI have running. See next post following this set up summary.
 
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