The Stochastic Indicator
- Thread starter jack hershey
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Today on the short in the pm...when the macd 5,13,6 squeezed was a good exit...compared to the fast line going back up and over on stoch 14,1,3.
I humbly cheated,
I took what the market gave me
838.25 at 14:17est
836.00 at 14:48est
Plus 2.25.
I humbly cheated,
I took what the market gave me
838.25 at 14:17est
836.00 at 14:48est
Plus 2.25.
...not a good day
With the gap, that I still am not sure of how to "play", plus the reports due at ten, I did nothing off the open.
Woulda/coulda/shoulda gone short at 10:50 @844.25 - but I second guessed the "method", passed, and lost out on 3 points (using a 75/25 trigger).
02:18 Short @838 - this was pushing as the Histogram had closed at -.40 on the previous bar. After moving down a point and a half, I "washed" when it came back to my entry. Had I played by the rules, it would have been a 3.50 gain.
Bottom line on the day: Jack +6 1/2 - Tampa 0
CRAP
With the gap, that I still am not sure of how to "play", plus the reports due at ten, I did nothing off the open.
Woulda/coulda/shoulda gone short at 10:50 @844.25 - but I second guessed the "method", passed, and lost out on 3 points (using a 75/25 trigger).
02:18 Short @838 - this was pushing as the Histogram had closed at -.40 on the previous bar. After moving down a point and a half, I "washed" when it came back to my entry. Had I played by the rules, it would have been a 3.50 gain.
Bottom line on the day: Jack +6 1/2 - Tampa 0
CRAP
When the stoch lines are entwined if then the fast line moves out of the zone (0-20; 80-100) then I look more carefully on the price action. The last point of exit would be when the slow line also crosses over the zone line.
If it moves up and down during the same 5min bar I look at price action. The fast line doesn't have much meaing.. it's the slow line that does. I quote Jack "It's slow and shy". For me personally so far with the experience on jack's method in the real market it gives great guidelines when to be in the market and when to stay out.. but the actual entry and the actual exit need little more fine tuning.
By the way today in the Euro Bund:
3 Trades. 1st: 0.05, 2end: 0; 3rd: 0.16
total 0.21pt = 210⬠- 30⬠Commission = 180â¬
Okay play ball.
Here is where we build edges for each and everyone based on their NLP pictures.
Tampa be an ice berg and move over to the 5, 2, 3. You can skip to intermediate right now cause i need to soup up your ROI to get you to lead a little here.
If you see the open on aq gap, forget retraces and every other picture you have ever seen
Just pretend you are "ice berging". Stay in until it comes out the other side BUT do it all on the 5,2,3.
Everyone, beginners and intermediates, goes in. When it turns out to not be a rocket it is left being an iceberg. Gaps usually fail as BO's (you see this in the retrace). So when you are in an iceberg you need to just hang in there.
To day the gap up was a rocket from the open. beginners got out soon. So do ice bergers who trade rockets just like beginners.
To be using the 5,2,3 you get out earlier and nearer the pek (but still after.
The "short" entry on the 5,2,3 for the intermediate ice berger lasted all day. you can see that the brief calculation (5,2,3) on this stoc keeps you with the "drift" of the slow market.
Beginners nailed three trades today; they get in a little late only on strong enough trades to make some money. This is a good deal until you tripple your initial capital.
The first short trade ended with 5,2,3 weaving the 50. until the afternoon started up. In or out you make nothing during this time.
On 5,2,3 you can see the slow down drift for the pm.you were in at the end of the day doing it as an iceberg on 5,2,3.
MACD comments
You can see by now that the 5, 13, 6 is kewl. For Alian and others, I want you to use the fast peak and xover as reversals when you have good convergence between the two line between peak and xover.
Reversals are go9ing to take you into the congestion always. Use MACD to reverse through the entire period. Get out on low histogram if MACD is centering on 0 or if it is working "away" from 0 then stick with the slow trend.
Both sets of these instructions give the same results. So as you trade look for corroberation on this with both the MACD and the Stoc.
Any time anyone gets behind the beat just exit. Then when you start again go back to your prior way of doing it and work into the new stuff once again after you have relaxed.
We are beginning to eat into the backtesting the back testers could have been doing by now.
I don't know exactly why we aren't getting the losses they came up for us. I am going to begin to move ahead a little.
Here is where we build edges for each and everyone based on their NLP pictures.
Tampa be an ice berg and move over to the 5, 2, 3. You can skip to intermediate right now cause i need to soup up your ROI to get you to lead a little here.
If you see the open on aq gap, forget retraces and every other picture you have ever seen
Just pretend you are "ice berging". Stay in until it comes out the other side BUT do it all on the 5,2,3.
Everyone, beginners and intermediates, goes in. When it turns out to not be a rocket it is left being an iceberg. Gaps usually fail as BO's (you see this in the retrace). So when you are in an iceberg you need to just hang in there.
To day the gap up was a rocket from the open. beginners got out soon. So do ice bergers who trade rockets just like beginners.
To be using the 5,2,3 you get out earlier and nearer the pek (but still after.
The "short" entry on the 5,2,3 for the intermediate ice berger lasted all day. you can see that the brief calculation (5,2,3) on this stoc keeps you with the "drift" of the slow market.
Beginners nailed three trades today; they get in a little late only on strong enough trades to make some money. This is a good deal until you tripple your initial capital.
The first short trade ended with 5,2,3 weaving the 50. until the afternoon started up. In or out you make nothing during this time.
On 5,2,3 you can see the slow down drift for the pm.you were in at the end of the day doing it as an iceberg on 5,2,3.
MACD comments
You can see by now that the 5, 13, 6 is kewl. For Alian and others, I want you to use the fast peak and xover as reversals when you have good convergence between the two line between peak and xover.
Reversals are go9ing to take you into the congestion always. Use MACD to reverse through the entire period. Get out on low histogram if MACD is centering on 0 or if it is working "away" from 0 then stick with the slow trend.
Both sets of these instructions give the same results. So as you trade look for corroberation on this with both the MACD and the Stoc.
Any time anyone gets behind the beat just exit. Then when you start again go back to your prior way of doing it and work into the new stuff once again after you have relaxed.
We are beginning to eat into the backtesting the back testers could have been doing by now.
I don't know exactly why we aren't getting the losses they came up for us. I am going to begin to move ahead a little.
"You can see by now that the 5, 13, 6 is kewl. For Alian and others, I want you to use the fast peak and xover as reversals when you have good convergence between the two line between peak and xover.
Reversals are go9ing to take you into the congestion always. Use MACD to reverse through the entire period. Get out on low histogram if MACD is centering on 0 or if it is working "away" from 0 then stick with the slow trend."
What this means to me:
If we are in a rocket/fast pace trade long (like this morning) when the MACD 5m peaks and then we have a 5m MACD XO go short on the cross over.
I don't understand what is meant by "when you have good convergence between the two line between peak and xover"...if you could explain it further or with an example would be great.
Intermediate Question:
enter on (5,2,3) if it turns into a rocket you exit it just like a rocket, if it does not turn into a rocket stay in the trade until it crosses the other side OR pretzels at 50(congestion). (is my interpetation correct?)
Thanks in advance.
Reversals are go9ing to take you into the congestion always. Use MACD to reverse through the entire period. Get out on low histogram if MACD is centering on 0 or if it is working "away" from 0 then stick with the slow trend."
What this means to me:
If we are in a rocket/fast pace trade long (like this morning) when the MACD 5m peaks and then we have a 5m MACD XO go short on the cross over.
I don't understand what is meant by "when you have good convergence between the two line between peak and xover"...if you could explain it further or with an example would be great.
Intermediate Question:
enter on (5,2,3) if it turns into a rocket you exit it just like a rocket, if it does not turn into a rocket stay in the trade until it crosses the other side OR pretzels at 50(congestion). (is my interpetation correct?)
Thanks in advance.
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