The Stochastic Indicator

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Jack,

Thanks for addressing my questions. As promised, I'm back with more today after reading the thread up to page 39. It took me four hours, but it was worth it - I see the method in its intended perspective now, and even beyond that, the rhythm of the market throughout the day. Thanks to all for posting their results and charts.

So here are my questions on the stuff that I've read so far (I apologize if they were already answered, but a little repetition will only reinforce some, IMO, important facets). The questions go to the others following the thread too.

1. 1 min chart for prorating: do you have stochastics and MACD on this chart as well? Same settings? What do you base your decision on - price action with S/R levels, or indicators? I'm inclined to keep this simple, since it is a "helper signal " not a main one - so price action and S/R only.

2. What are the 3 levels of volume?

3. Is there a difference between congestion, convergence and centering or are they used as synonyms?

4. When do you practice the wash trades at the beginner level? My understanding is during the low volume period - which stochastic settings do you use for entry?

5. What is the mysterious KISS?

I haven't seen many backtesting results posted, so I'll post mine soon.

Good trading tomorrow!
 
dawg,

Since you are posting charts daily, here's a nice utility that I use to get high quality .gif files (courtesy of nihaba).

Quote from NihabaAshi:



You should save your image as a .bmp instead of as a .jpg

The picture quality is so much better.

After you have saved it as a .bmp file...you can use something like Xnview at http://www.xnview.com to change the image to a .gif without any loss of quality.

.jpg losses too much image quality for what your trying to use it for.

I also use QCharts and it does allow you to save your image as a .bmp file

Also, with xnview...you can even skip the entire process of converting from .bmp to .gif

Thus, you can save it as a .gif without the .bmp step

Good luck and good night.

NihabaAshi
More...
 
Quote from vorzo:

dawg,

Since you are posting charts daily, here's a nice utility that I use to get high quality .gif files (courtesy of nihaba).
More...

Thanks so much. I have been trying to learn how to get acceptable charts for ET.
 
I parsed this below. look for ****'s.


Quote from vorzo:

Jack,

Thanks for addressing my questions. As promised, I'm back with more today after reading the thread up to page 39. It took me four hours, but it was worth it - I see the method in its intended perspective now, and even beyond that, the rhythm of the market throughout the day. Thanks to all for posting their results and charts.

**** I will get the pages copied and in order and do an edit amd markup ASAP. I have dictating and transcriptions services so I can redo everything form an information viewpoint rather than a response viewpoint. This war thing is an excellent context for how difficult a market can be in uncertain times.

So here are my questions on the stuff that I've read so far (I apologize if they were already answered, but a little repetition will only reinforce some, IMO, important facets). The questions go to the others following the thread too.

****There are three aspects of learning that help out. What you are doing is priceless. The four stepper contains two others: Assessment and speaking aloud. By characterizing you situation (Step1) you assess. By expressing your goals and doing it aloud, you deal with the intellectual and the emotional by imprinting (Steps 2 and 3.) This is a replacement process for NLP pictures. Step 4 is a closure mechanism for a soft (step 1) and a forceful (Step 3) set of impressions. You will find by doing the "eureka" thing that there is a much faster transition from level to level.
Watch how the transition of profitability goes with the posters of results. They are annotating success in processing methodology.

****There is a profound thing happening. Pay particular attention to their washes and how they operate with failures of trends to form and how they stay in trades longer and longer.

1. 1 min chart for prorating: do you have stochastics and MACD on this chart as well? Same settings? What do you base your decision on - price action with S/R levels, or indicators? I'm inclined to keep this simple, since it is a "helper signal " not a main one - so price action and S/R only.

**** when we get into it you will see that fractal pairing is so powerful. As a side trail watch brandonf as well. He uses a slower set (3) fractals where he chooses an appropriate one. He then goes to a faster set (3) to pair with his trading fractal to "confirm" what is coming up as a trading signal. I did a "tape" thing to get people to the slowest fractal possible for monitoring a given market pace. This is where price bars fill the point 1,2,3, channel by their volatility. The set of indicators work the same on all fractals.


**** keep your charts on any fractal identical. I am on Qcharts so I just change the "interval" and my indicators come right along.

2. What are the 3 levels of volume?

*** DU (dry up) use a ray (extended) on the volume for the trading fractal: it screws up on the other fractals. 5,000 is where mine is. This is where little signal and all noise exists. The signal comes above DU. FRV (First rising volume) This is a leading indicator of price BO. For ES I am using 11,000. Anywhere from 8K to 12K is appropriate. To day's short is on FRV all the way so far; we will see it decline going into midday. Peaking is 20,000 and it represents an unsustainable volume where thereafter ther is going to be change (trend and price). The rays make it easy. On the 1 min they are above what you see. VDU in DU times is an important precursor. This is equivalent to loosing the "noise" signal. When you looose the noise, then there is a serious dissagreement among active buyers and sellers. Look for high spreads and whne they cease a hammer is coming down. And what ever happens will fail to be sustained. This is a killer for beginners.

3. Is there a difference between congestion, convergence and centering or are they used as synonyms?

*** This is a sequence. The order is congestion (lateral fixed volatility channel), convergence (a symmetric pennant transition), and centering (later pennant where there is no harmonic and volatility compression (Conners-Hayward) is the major function. I have converted the YHayward from relative to absolute; we will pick that up later.

4. When do you practice the wash trades at the beginner level?

****For paper traders daily. For real I would knock off one around 11:00 and do 1 or two more between 11:30 and 12:45.

My understanding is during the low volume period - which stochastic settings do you use for entry?

Go in on the away side of the channel you have rolling. you may make a little money each time. If you are doing good washes then do a reversal with the wash and that will sharpen you up a little cause you are doing neutral biased pairs. I can tell you that people invariably favor wash practice in a biased way. This specific comment should give non weasels another clue as to what they are missing in their stuck mental state. I use weasel as you see to trigger responses from non weasels The fruit person is the easiest controlled non weasel at this point.

5. What is the mysterious KISS?

*** KISS is a grammar school expression that hits when kissing girls comes up. Keep It Simple, Stupid. You can also use it without the comma.

I haven't seen many backtesting results posted, so I'll post mine soon.

****Good thanks.

Good trading tomorrow!
More...
 
This stuff is gold. Thanks everyone contributing to this thread. I'm learning tons here, and have a long way to go, am only paper trading. I still can't get over my own psychological barriers, lol.

(THIS IS GREAT)

I would like to ask a question(s) about stop lists.

Using todays' trading log for ES03M as the scenario:

At Market opening:
- Open gap down (~ 7 pts) outside last days' trading range
- all stocs < 25 %

- 9:48 am est sync between spx.x and es
(at least moving in tandem)

- 9:55 ENTRY
15 min macd diverging below neutral
5 min macd diverging below neutral
1 min macd return to neutral about to xovr and
head back down

1 min volume diminishing with mini fbps
forming on all three indexes es,nq,dj
( or at least top of price bars pulling down)

all sectors of market map red
all quote sheets red

- 9:59 (high anxiety)
- 10:07 (high anxiety)
- 10:15 (high anxiety)

Channel forms with left and right trend lines
stocs holding, slow paced relax a little

- 10:38 pace picks up with ~ 7k/1 min volume spike
hitting lt line

- 10:40 trends' peak volume ~17k (?) on 5 min chart

- 10:50 broke rt line but stoc held below 25 %
still oversold

- 11:12 volume diminishing then kicks in, pace picks up
retesting and breaking support level formed within
previous channel drawn

- 11:20 EXIT
stoc(14,(1),3) broke above 25 % preceded with a nice
mini ftp formation on 1 minute.
Exit according to beginner mind set! and use only 1 contract!

QUESTIONS
9:55 to 11:20 is an eternity. So what stops to pick and choose
along the way ?

What was the trends ' pace ? was the tape on 5 min / 15 min ?

Given the pace how far back should I go in price bars to
choose stops ?

(thanx in advance)
 
Quote from colina:

This stuff is gold. Thanks everyone contributing to this thread. I'm learning tons here, and have a long way to go, am only paper trading. I still can't get over my own psychological barriers, lol.

(THIS IS GREAT)

I would like to ask a question(s) about stop lists.

Using todays' trading log for ES03M as the scenario:

At Market opening:
- Open gap down (~ 7 pts) outside last days' trading range
- all stocs < 25 %

- 9:48 am est sync between spx.x and es
(at least moving in tandem)

- 9:55 ENTRY
15 min macd diverging below neutral
5 min macd diverging below neutral
1 min macd return to neutral about to xovr and
head back down

1 min volume diminishing with mini fbps
forming on all three indexes es,nq,dj
( or at least top of price bars pulling down)

all sectors of market map red
all quote sheets red

- 9:59 (high anxiety)
- 10:07 (high anxiety)
- 10:15 (high anxiety)

Channel forms with left and right trend lines
stocs holding, slow paced relax a little

- 10:38 pace picks up with ~ 7k/1 min volume spike
hitting lt line

- 10:40 trends' peak volume ~17k (?) on 5 min chart

- 10:50 broke rt line but stoc held below 25 %
still oversold

- 11:12 volume diminishing then kicks in, pace picks up
retesting and breaking support level formed within
previous channel drawn

- 11:20 EXIT
stoc(14,(1),3) broke above 25 % preceded with a nice
mini ftp formation on 1 minute.
Exit according to beginner mind set! and use only 1 contract!

QUESTIONS
9:55 to 11:20 is an eternity. So what stops to pick and choose
along the way ?

What was the trends ' pace ? was the tape on 5 min / 15 min ?

Given the pace how far back should I go in price bars to
choose stops ?

(thanx in advance)
More...

Hi colin,

Thanks for posting.

The gap down open caused a late synch as you noted.

Also notice how as the old data is used up the relative indicator (14,1,3,goes from relatively smooth to a rougher performance. Use 10:45 for befora and after dividing time.

For the period after synch to trend end you had a particularly fast pace as shown by AWAY on MACD and by rocket on the Stoc.

beginner rockets entered at about 877+/- and 867 +/-. If there is any descretion in their effort they did more or less. It doesn't matter. The "tape" was on 5 min during this time.

The tape went to 15min at 10:45 and if you moved to the 15, you are exiting around 13:30 to 13:15price is around 866 so staying in get one more point and you endure risk.

We are at centering of a lateral sequence of congestion convergence and centering. to enter now as an intermediate or expert you use volume BO first, MACD BO second (off neutral) and Stoc BO off 50%.the bracket centering value is 866.

you see it can go either way and who cares. Getting the spread for the bracket is done to keep you out of the failure to BO range of possible values. THe trade you do not take gives you your first trailing stop.
 
Quote from colina:

[
QUESTIONS
9:55 to 11:20 is an eternity. So what stops to pick and choose
along the way ?

What was the trends ' pace ? was the tape on 5 min / 15 min ?

Given the pace how far back should I go in price bars to
choose stops ?

(thanx in advance) [/B]
More...

QUOTE]Quote from colina:

[
QUESTIONS
9:55 to 11:20 is an eternity. So what stops to pick and choose
along the way ?

What was the trends ' pace ? was the tape on 5 min / 15 min ?

Given the pace how far back should I go in price bars to
choose stops ?

(thanx in advance) [/B][/QUOTE]

This is second try the first one disappeared as I moved it to ET.

I will change machines for this., It will come in under Liz’s machine name but he is not doing the post. I am dictating it..
 
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