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The Stochastic Indicator
- Thread starter jack hershey
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Quote from bdixon619:
I've been watching the ES contract today. Has anybody been trading the chop since about 11:15 EST? Reason I'm asking is there have been some nice up and down runs that stochastics have captured.
Bruce
Alain and some others are tumed into this. They are working it using an orientation that comes from wash trades being improved by trading on the right side of congestion. They are simply using the end effect of a fast paced trade going into congestion and trading the opposite of getting whipsawed.
As you saw this (chop as you say)ending, after convergence with a flat bottom pennant (FBP) centering. All of this (FBP centering) leads to the 13:15 daily event. Today 13:15 occured at 14:05+/-
and the beginners drop into a short fast paced trade while the intermediate ice bergers have been in since the first chop bottom at 12:10 +/-.
You can see that the volume took everyone out of the chop because the chop only operates on less than a trend sustaining volume. soon we will add three levels of volume as horizontal lines so everyone knows how to be trading as experts according to the volume level situations.
it is imprtant to know when things are going to be beginning and you can tell this by tracking volume levels since you can easily see their transitioning to new levels before the price action begins.
For back testers we can do this as exercises after the first 6 to 8 backtests are completed.
Roughly what happens is that the backtesting model in use is sequenced as the P, V relation dictates what test mode is to be used during the market intraday action.
the current order of magnitude differences( 12,000 for one and 1200 for the other.) of the bact testers will get resolved as we find out what their limitations are as we get into backtesting screw ups.
Trading Jack...I think
A really bad connectivity problem, I was late getting in, and too scared to stick around on the first trade:
10:32 Long @835
At one point I had better than 5 points, but could not get out until +3.50
I did not take the short signal at 02:30, as the Histogram did not confirm. Not really knowing what to do, I entered at 02:40 when the Histogram dropped below -0.4. The price action did not make me happy, so I "washed" at 02:53.
03:47 Long @837.50
03:56 Out @835.50 minus 2 points
For the day: Plus 1.50 points.
A really bad connectivity problem, I was late getting in, and too scared to stick around on the first trade:
10:32 Long @835
At one point I had better than 5 points, but could not get out until +3.50
I did not take the short signal at 02:30, as the Histogram did not confirm. Not really knowing what to do, I entered at 02:40 when the Histogram dropped below -0.4. The price action did not make me happy, so I "washed" at 02:53.
03:47 Long @837.50
03:56 Out @835.50 minus 2 points
For the day: Plus 1.50 points.
Here is the chart so far.
the icebergs are smart enough to get out at end of beginner trade because they know the beginner trade ends in congestion and trading the "chop" until convergence and centering come up.
the icebergs are smart enough to get out at end of beginner trade because they know the beginner trade ends in congestion and trading the "chop" until convergence and centering come up.
1. Enter: Long @ 834.25 10:29
Exit: Sell @ 839.00 10:43
Total: +4.75 Day: +4.75 Week: +15.50
Reason for entry: 10:20 5m Stoch(83.87, 76.34) MACD Hist 0.415. Bought the break over the 10:20 high (was also a new HOD).
Reason for exit: Ok i bailed early. Mkt approached 840 which had been death resistance for the last 3 days so i got before it. Also the big vol spike 27k had me thinking exhaustion move. There was a MACD 5m XO at 11:10 with a low of 839.25 so i think it may have been the same price either way.
2. Enter: Short @ 833.75 @ 2:33
Exit: Cover @ 832.50 @ 2:57
Total: +1.25 Day: 6.00 Week: +16.75
Reason for entry 14:05 5m bar Stoch(8.70, 22.90) Macd Hist:-0.473. Now i was hesitant b/c it was still within a channel on my chart that i had drawn from the afternoon chop so i wanted to see a little more downward movement. (see attached chart). SO we had several reversal candles and then a b/d out of the channel which is when i shorted.
Reason for exit: Big vol spike at 2:35 bar and when the 1m MACD had a XO(2:42) and then a higher low on the new low(2:52) and the new low was on much lighter volume and the NQ did not make a new low i put a stop above the high of the 2:50 bar @ 832.50.
3. Enter: Long @ 837.75 3:42
Exit: Sell @ 836.50 4:00
Total: -1.25 Day: +4.75 Week: 15.50
Reason for entry: 3:35 5m bar Stoch(92.86, 77.23) MACD Hist:0.765. Bought a move over the high of that bar.
Reason for exit: held to end of day. Sold at 4pm.
My computer is messed up so i can't post the chart.
Exit: Sell @ 839.00 10:43
Total: +4.75 Day: +4.75 Week: +15.50
Reason for entry: 10:20 5m Stoch(83.87, 76.34) MACD Hist 0.415. Bought the break over the 10:20 high (was also a new HOD).
Reason for exit: Ok i bailed early. Mkt approached 840 which had been death resistance for the last 3 days so i got before it. Also the big vol spike 27k had me thinking exhaustion move. There was a MACD 5m XO at 11:10 with a low of 839.25 so i think it may have been the same price either way.
2. Enter: Short @ 833.75 @ 2:33
Exit: Cover @ 832.50 @ 2:57
Total: +1.25 Day: 6.00 Week: +16.75
Reason for entry 14:05 5m bar Stoch(8.70, 22.90) Macd Hist:-0.473. Now i was hesitant b/c it was still within a channel on my chart that i had drawn from the afternoon chop so i wanted to see a little more downward movement. (see attached chart). SO we had several reversal candles and then a b/d out of the channel which is when i shorted.
Reason for exit: Big vol spike at 2:35 bar and when the 1m MACD had a XO(2:42) and then a higher low on the new low(2:52) and the new low was on much lighter volume and the NQ did not make a new low i put a stop above the high of the 2:50 bar @ 832.50.
3. Enter: Long @ 837.75 3:42
Exit: Sell @ 836.50 4:00
Total: -1.25 Day: +4.75 Week: 15.50
Reason for entry: 3:35 5m bar Stoch(92.86, 77.23) MACD Hist:0.765. Bought a move over the high of that bar.
Reason for exit: held to end of day. Sold at 4pm.
My computer is messed up so i can't post the chart.
there is a post in the journal. If you want to reply to it do it here, please.
Volume falls off (see the Stoc go to 50%) and price centers. as volume kicks back in (do porrata or one min observation ) and the end of the day effects are in play from here on out. These three end of day events always happen and whatever contemporary volume is there will always sustain these events.
If you have read this far you better notice that you are not an expert at all. The message here is that there are a lot of stuff to learn to pull down the money all the time.
Qusetions:
1. What do you mean by contemporary volume.
2. Are talking about end of day trend changes going throguh this process: volume decreases---->stoch goes to 50% (which stoch are you refering to?)------>volume picks back up and drives price
3. What does FBP mean? (edit: Flat bottom pennant. go it. saw it in an earlier post)
Thanks.
If you have read this far you better notice that you are not an expert at all. The message here is that there are a lot of stuff to learn to pull down the money all the time.
Qusetions:
1. What do you mean by contemporary volume.
2. Are talking about end of day trend changes going throguh this process: volume decreases---->stoch goes to 50% (which stoch are you refering to?)------>volume picks back up and drives price
3. What does FBP mean? (edit: Flat bottom pennant. go it. saw it in an earlier post)
Thanks.
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