The Stochastic Indicator

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#1 MACD convg -> rocket failure -> slow uptrend setting up -> tried an iceberg for the 1st time
Long 888.25 9:52
Sell 895.50 10:35
+7.25

10:01 high vol 1m down bar - ready to exit -> picked up on next bar -> BO to new high 2 bars later.
10:30 5m bar rocket signal -> exhaustion volume -> exit when it started to pull back as I had to leave for work in 15 min and I thought this would be a nice exit point.
Wrong. Rocket continued and 20 min later mkt was 5 pt higher.

In hindsight, if one stayed in till rocket failed the exit would have been at 11:05-11:10 between 895.50-897 for max 1.5 pt more.
A nice reentry at 11:40-11:45 on MACD x and rocket signal (15m was showing a rocket too).

The iceberg would've kept you in till 15:40 - exit at 909.00 for a whopping 20+ points! It looks as if today was one of those rare days when the market was giving away money ... I hope some people took it.
 

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Signals for iceberg - MACD x up, failed rocket and slow uptrend setting up. I didn't know for sure, was ready to wash before confirmation at 10:03-10:05.
Jack said he was busy doing something else - I hope he will post again.
 
Is the trend is a rocket or iceburg?


And, the answer is you look at first 1 minute, then 3 minute chart
use 3 ma to see what angle or slope it is. If angle is 45 degree or more you know it is a rocket, or else it is an iceburg. This is only a setup for the scalp, then use 13 minute chart for entry.

Mean time, double confirm it with stoch as it is a momentum indicator, and macd for to see if it is a real trend.

:cool:
 
#1 9:45 rocket signal but numbers at 9:45 an 10:00 -> 10:15 rocket reentry, bounce off right side of channel (continued from yest) on strong volume

Short 905.50 10:18
Cover 898.75 11:37
+6.75

11:15 new channel broken on low vol, MACD and stochs ok -> 2nd point 3? -> 11:20 inside VDU up bar (no flaw) -> 11:25 downside BO -> 11:30 BO fails and stochs leave zone -> exit

#2 tried 14:55 VDU BO

Short 897.50 14:56
Cover 897.75 15:53
-0.25

BO was kinda weak but stayed in since it didn't reverse, and rocket was forming. Washed when volume picked up to the upside and rocket failed. Noticed slow channel only after the trade.

Day +6.50
Week +17.75
16 days (42 trades) +51.50
 

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Didn't trade yesterday :mad: Today:

#1 long rocket
Long 918.75 9:49
Sell 923.00 10:15
+4.25

Didn't know about report at 10:00 and was probably better off, I would've passed on the trade perhaps.
Exit after low up vol bar (report exhaustion bar suggested reversal). I felt like reversing but didn't have the guts.

#2 MACD cross -> short rocket
Short 916.75 10:39
Cover 910.50 10:53
+6.25

Exit on away side after exhaustion volume, and at yest afternoon's low. Had to leave for work and it looked like a good exit point.

A thought on reversals: most of the time you are better off reversing as soon as there is a flaw in the trend:
- if a reversed trend arises, you are in early and score nice points (today the short trade would've been +12.50)
- if it's a new point 3 or it ends in CCC, you wash for a small loss

Day +10.50
Week +10.50
17 days (44 trades) +62.00
Whoa.
 

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We miss your posts.

I went over some earlier posts and I have a question about A/D: you mention repeatedly that it's an important factor of how markets work.
I am familiar with your trend scoring system - do you use A/D for stocks only or can it be applied to EMinis too.
How do you get the value for A/D - from the A/D indicator constructed as explained here:

http://www.incrediblecharts.com/technical/ad_construction.htm

or is it a visual pattern on the chart?

Thanks,
vorzo
 
i agree on your point about reversals...if you feel strong enough that you no longer want to be long...then you shouldn't just exit but get short...it takes some guts(until you get used to it), but r/r can be huge...today it made the trade double the profit....i am not there either(by a longshot), but at least we know the goal we trying to achieve..

good luck and keep up the hard work.
 
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