The Stochastic Indicator

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It might be interesting to post theoretical trades in which the stochastics signal a trade, but for which the MACD does not confirm. This would provide a method to determine the actual usefulness of this filter. FWIW
 
Quote from tampa:



I refer you to what has been posted by Jack. interpret it as you will. Trade it, or don't.

But let's cut the crap as to what your game is...OK?
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I have done as you suggested....reviewed the rules Jack posted.

No where in those rules do I find any reference similar to yours regarding MACD. The only reference I find is that the histogram is supposed to be over +.4.

But since you are either unfamiliar with Jack's rules, or have established your own rules, I should point out that under Jack's rules he would not have taken a buy at around 10:50AM, because the trigger for a buy is the slow stochastic, not the fast that you are operating with. The MACD however was not the problem under the rules Jack published.

My suggestion would be that when you post the results of these trades that you make, that you post the method you are using, since you evidently are using a modification of Jack's method. There may be a few people who would like to know whose method they are using....Jack's or Tampa's.

OldTrader
 
Quote from OldTrader:



I have done as you suggested....reviewed the rules Jack posted.

No where in those rules do I find any reference similar to yours regarding MACD. The only reference I find is that the histogram is supposed to be over +.4.

But since you are either unfamiliar with Jack's rules, or have established your own rules, I should point out that under Jack's rules he would not have taken a buy at around 10:50AM, because the trigger for a buy is the slow stochastic, not the fast that you are operating with. The MACD however was not the problem under the rules Jack published.

My suggestion would be that when you post the results of these trades that you make, that you post the method you are using, since you evidently are using a modification of Jack's method. There may be a few people who would like to know whose method they are using....Jack's or Tampa's.

OldTrader
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For the life of me I cannot recall asking for your advice, guidance, opinions, or views. But now that I think about it, virtually no one ever has, although that hasn't kept you from offering them.

Now allow me to refer you to what I have written. A close examination of same will reveal that I said things like: "...as I understand it". Perchance you might even want to read more of Jack's work. You will find reference to "cheating", using 25-75 triggers, single line entry, and mention of MACD crossovers.

But the real point here is not your interest in a strict adherence to Jack's writings, nor a concern for those following along, and certainly no interest in the method for your own edification. It is your meddling, nitpicking, and desire to demonstrate your superior skills and knowledge.

Should you have any further questions, address them to Jack. Should you have any additional critiques of how I am trading the method, please feel free to report me at once to the author as well.

As far as I am concerned, this matter is closed.
 
Quote from tampa:



For the life of me I cannot recall asking for your advice, guidance, opinions, or views. But now that I think about it, virtually no one ever has, although that hasn't kept you from offering them.
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This is a MESSAGE BOARD. If you don't want someone to post their opinions or views, don't post here. I'm glad OldTrader offers his views, because they are more informed than just about anyone elses on these boards.
 
1. Short below the 9:45 Bar stoch(5.77, 12.82) already had a MACD reading below -0.4, but waited for low of day to break (only 0.25 difference) b/c market opened below the 20 line.

Short @ 822.75
Cover @ 819.50
Trade: +3.25 Day: 3.25 Week: +5.25

Reason for exit: Double reversal candles, large vol print 24k @ 10:00, MACD 5m XO @ 10:15.

Did not look for trades until after 1:15

2. Long above the 1:20 5m bar stoch(100, 91.67) MACD Hist 0.44.

Long @ 825.50
Sell @ 822.75
Trade: -2.75 Day: +0.50 Week: +2.50

Reason for exit: 1:35 bar stoch(56.00, 70.50) broke low of this bar.

3. 1:55 bar Stoch(95.24, 80.87) i viewed this as a re-entry of the current trend, so was not looking for the MACD reading although it did go over 0.4 on the bar I entered. I waited for the HOD to be borken and bought on the b/o.

Long @ 827.25
Sell @ 828.50
Trade: +1.25 Day: +1.75 Week: +3.75

Reason for exit: 2:35 bar Stoch(64.10, 76.07) went below low of this bar and i sold.

4. 3:20 bar stoch(82.76, 83.65), several MACD hist readings above 0.4. Buy above 3:20 5m bar.

Long @ 834.50
Sell @ 839.25
Trade: +4.75 Day: +6.50 Week: +8.50

Reason for exit: 4pm close

Thought people might be interested. So far it has been majority of grinding type-breakeven trades with a few real nice winners, but if there is any extended trending you will definitely get a good portion of the move. Like a lot of trading a few winners may make up the bulk of the profits. Not making any conclusions just observing the results so far.
 
Quote from NihabaAshi:



Wally,

That's why I specifically mention (what you read) PARABOLIC trends and not some small trend or trends within tight-trading ranges.

PARABOLIC TRENDS...I did not say stochastic doesn't work during small trends within tight-trading ranges.


P.S. Wally...your absolutely correct...Bollinger Bands if thats what you meant by BBs...are great when bundled with stochastic.

NihabaAshi
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Nihaba,

I agree with you. I could probably agree with you even more after reading your elaborate post more carefully, but have no time
for that at this point.

Yes, by BBs I meant Bollinger Bands and yes I do use the PSAR as well and find it very useful.

Take care,
Wally
 
Quote from tampa:

For the life of me I cannot recall asking for your advice, guidance, opinions, or views. But now that I think about it, virtually no one ever has, although that hasn't kept you from offering them.

Now allow me to refer you to what I have written. A close examination of same will reveal that I said things like: "...as I understand it". Perchance you might even want to read more of Jack's work. You will find reference to "cheating", using 25-75 triggers, single line entry, and mention of MACD crossovers.

But the real point here is not your interest in a strict adherence to Jack's writings, nor a concern for those following along, and certainly no interest in the method for your own edification. It is your meddling, nitpicking, and desire to demonstrate your superior skills and knowledge.

Should you have any further questions, address them to Jack. Should you have any additional critiques of how I am trading the method, please feel free to report me at once to the author as well.

As far as I am concerned, this matter is closed.
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tampa, you're a bitch.

F. P.
 
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