The Stochastic Indicator

[jack hershey]

Quote from sempai:



90,000 a year beginner level??

Give me a break.

Watch and see.

Today's date is 22 FEB 03. let me know how much you want to start with. you cn be our example. When we get to 90K plus your number we can prorate the annual ROI. If it happen to ghet rolling i am going to cheat and move up the earnings pace to prevent dullness from setting in.

Let me kbnow the daily profit needed to squeak by in just a year too if you can do it.

 

[jack hershey]

Quote from MondoTrader:

stochastic is not a perfect indicator, because there is no perfect indicator. Personally I find stochastic usefull when it agrees with another oscillator like MACD, however both can be useless if there is a strong trend.

Mondo take a good look at the two. Stoc is relativistic and MACD is absolute.

In strong trends, you will see the MACD go "away" from 50 and sit at the money valocity of the trend. On the otherhand Stoc just goes to an extreme and pegs. most people sit and watch the Stoc be pegged and say something like: Gees (mktman talk..lol...) i hope it breaks through soon so I can get into ...blah blah. All the while the MACD is telling you how fast money is being made all the while.

Once we start making some real money here we can get the MACD and Stoc coordinated because they really both give great signal;s that can be put in sequences to help us out on taking profits and reversing into the next trends if they are coming up.

 

[jack hershey]

Quote from AAAintheBeltway:



Don Cameron's handle was dufferdon, wasn't it? I wondered what happened to him, and certainly we all wish him well.

Don is now not maintaining the site. It as turned over to David Marshall for the future safekeeping.

Don will not be posting anymore. He was one of the most syupportive persons that could be for short term equities traders.

 

[jack hershey]

Quote from dawg:

In an attempt to learn more and it seems others are interested I am trying to trade jack's 'fast or rocket trades'. I have my screen setup as Jack suggests:
5m Price
Volume
Stoch (5,2,3)
Stoch (10,2,3)
Stoch (14,1,3)
MACD (5,13,6)

and have a 1min screen with same info to get a better picture as what potentially lies ahead for the 5m.

My understanding of the Fast/Rocket Trade:
Use the Stoch (14,1,3) enter LONG when both the fast and slow move above 80 and exit when both leave the 80. Enter SHORT when both the fast and slow are below 20 and exit when they both leave the 20. Ignore anything else on the stoch indicator.

Trade #1:
Stoch (14,1,3) 9.38(fast), 10.74(slow)
10:20 Short @ 845.00
10:43 Cover @ 847.00
Total: -2.00 Day: -2.00

Comments: Shorted on the move to new lows. MACD was below ) and sloping downward the first few minutes of the trade.
At 10:35 the stoch read 30.00(fast), 20.78(slow) as this was barely over 20 and not trying to picky, I would wait and see what the next bar brought. At 10:40 stoch was 25.00(f), 22.25(s) there was a little spike up over some reversal bars so the i closed my short. I did not enter again b/c the next potential entry was after 11:15 and the MACD appeared to be very choppy and directionless.

Trade #2:
Stoch 12.50(f) 12.10(s)
1:25 Short @ 841.75
2:02 Cover @ 842.00
Total: -2.25 Day: -2.25

Comments: Market making new lows of day MACD below 0 not by a lot but faster line moving away from slow line. At 13:50 the lack of follow through in the nq to make new lows while the es made new lows concerned me (negative div. in my mind). At 1:44 the 1m MACD XO and at 11:55 the 5m MACD XO. Trade was exited with the stoch at 36.36(f) 25.76(s) 2:00 5m bar for a tiny loss.

Trade #3:
Stoch 95.45(f) 87.96(s)
3:27 Long @ 842.75
4:00 Sell @ 844.75 (market close)
Total: +2.00 Day: -0.25

Comments: Upward sloping MACD above 0 and moving away from slower line. Other stoch (5,2,3) and (10,2,3) also in their respective buy zones. Concerns during trade were at 3:42 the 1m MACD XO and a 1m trend line was broken. Both Stochs never closed belwo 80 on the 5m. Stayed in trade and closed at 4pm.


Great set of comments. For future stuff it is best to set your price chart to 10 point scale. The two point one you are using clouds your ability to "see" when the market is flat.


This day and the next were flat so no trading was possible.

I will go back to the very beginning as the days go by. We will not play on flat days. wewill use MACD to tell us if the day is flat. Do this: check foir flatness by staying sidelined when the histogram on 5 min is less than 0.4 for the time being.

Flat days do not have sufficient volatility to make money. they are valuable for practicing "wash" trades. Just do wash trades when you are in and not making money on a flat day. do at least three to five a wekk if you get the chance.

move your chart order so price is on top and then volume and MACD then the Stocs. They are correct as you have them.

Watch my replies to trendy. She is an accountant and lawyer so I am going to let her cheat everyday to give her an edge.

 

[jack hershey]

Quote from wally_:

If you enter on new lows you should be willing to take the risk of exiting on the last high swing. If you did like that you would make money on both shorts. BTW, you need no stochastics to trade like that, it's simply trading by price action.

We will put Wally in a category too. he looks like he is trained to do as well as ed seykota or Soros but hasn't dealt with the trining wheels issue as yet.

 

[iceman1]

Quote from ZBEAR:



There you have it Trendy - that has my vote.

No matter what you say,
If nobody understands you,
You're not communicating.

I smell sumthin' overripe - ie., "Jack".

Zbear... !?

Hey bro, what's YOUR claim to fame? Have you offered anything on ET of any value? Is so please point it out to the rest of us.

We're waiting!

:eek:

 

[jack hershey]

Quote from ZBEAR:

Good move dawg.

Now we'll see if Jack Hershey decides to "Belly Up to the Bar".

I think not ......... ( prove me wrong Jack ).

i can't focus on Zbear's non trading stuff but I am going to class him with sempai.. he needs a break too. there is a j person lurking as well. There is a word after "sceptic" that combines with irrational ..would someone let me know what it is and I can assign it someplace to others.

 

[bdixon619]

Quote from jack hershey:

i can't focus on Zbear's non trading stuff but I am going to class him with sempai.. he needs a break too. there is a j person lurking as well. There is a word after "sceptic" that combines with irrational ..would someone let me know what it is and I can assign it someplace to others. [/QUOTE

Would that word be Unbeliever? I believe, I believe!

Bruce

 

[nkhoi]

jack, you can attach any file using 'Attach file' window at the bottom of the post reply page and there is a limit of 500 words per post in case you make a long post.

 

[jack hershey]

Quote from Wlog:

I saw the posts, went to the link, tried hard to understand what Jack said, and either I am doing it totally wrong...or it does not seem to work. It does catch some nice moves, but 10pts does not cover up 14pts lost before you catch it.

Both of us are looking ay the 18th and 19 th and they are flat days. Soon it will be clearer that money is not made by going into a market moving laterally with low volatility. The posts on these two days ae reflecting how perceptive people are on flat days.

Remember stoc is a relative indicator and it move hrough it's whole range on all days. Begin to watch MACD for the ablsolute value indication of the trending of markets. With the histogram on MACD sitting around less than >5 most of th time , you will get to know a flat market.

Notice how Wally and trendy disregard the flatness of the market and look all the time to stoc for a possible trade. They will be whipsawed often by non signals.