The Stochastic Indicator
- Thread starter jack hershey
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we are looking for the whole trend and not just a straight line move...that is where the big moves are.
while the mkt pause would get my attention that 'single flaw' alone would not get me out of my trade...trend line still intact, just traversing pt 2-3, rocket signals still good. stick with trade...if rocket ends reverse.
one other thing is you could do is exit on the left/away side of channel and re-enter on the right side..although you don't always get that chance to re-enter as market can thrust upward.
i attached my 2m chart of channel
just my 2 cents.
while the mkt pause would get my attention that 'single flaw' alone would not get me out of my trade...trend line still intact, just traversing pt 2-3, rocket signals still good. stick with trade...if rocket ends reverse.
one other thing is you could do is exit on the left/away side of channel and re-enter on the right side..although you don't always get that chance to re-enter as market can thrust upward.
i attached my 2m chart of channel
just my 2 cents.
in an uptrend as you traverse from the left to right (pt 2-3) side volume should dry up as it approaches the supporting/right trend line and increase as it bounces off and upward...if it breaks down on increasing volume then clearly the trend is broken.
the hardest part is getting a handle on a traverse or reversal...so you can always look at the stochastic and macd hist readings.
the hardest part is getting a handle on a traverse or reversal...so you can always look at the stochastic and macd hist readings.
The second point 3 is often a parallel channel too the two pt 2s.
So if you see that you were in a rocket, had two pt 2s like dawgs pic shows, draw a parallel line from your original point 1 and a pt parallel too where the two pt 2 lines would be. this is the right side of the channel. You can see the price jsut bounced off that level before making its last traverse to the other side.
Once slaloming started, you can see on the 1 min that the time between peaks was 1 hour. Therefore, the optimal times to reverse would be every half hour. Although i psoted the 1 min, the peaks seem more obvioius on the 5.
jc
So if you see that you were in a rocket, had two pt 2s like dawgs pic shows, draw a parallel line from your original point 1 and a pt parallel too where the two pt 2 lines would be. this is the right side of the channel. You can see the price jsut bounced off that level before making its last traverse to the other side.
Once slaloming started, you can see on the 1 min that the time between peaks was 1 hour. Therefore, the optimal times to reverse would be every half hour. Although i psoted the 1 min, the peaks seem more obvioius on the 5.
jc
thanks for the Q' and their corresponding A's.
We are getting to several good strong monitoring goals at this point.
With regard to fitting stuff together. Try to operate off the 5 min primarily. This will take the "suddenly" thinking out of the picture.
Second, I do see people here posting sequence segments. they are really a good improvement on being conscious of market flow.
In the summmer, it is good to calibrate yours selves to a lower level of trading. This means that leeser volume will probably cause the same prior type reaction and that lesser volume will sustain a trend.
As you keep stop logs, if necessary you can go to a faster fractal for mini formation details. Don't get in the habit of being on the 1 min ever though.
When you see that the stoc stays entwined on the tape lines (80/20) it means that there is a slower than rocket level trend still going on. At the same time when you see the channel not getting to the left side, you correctly are going into the slalom "change" mode that calls for reversals. As people catch on to the periodicity (You are speaking of it now) it gets much easier to squeese out slaloming max points. You make them both ways on the slaom so they do add up.
I see that mostly everyone has the rockets nailed now. and you are getting points 1,2,3 done and are willing to move point 3 as required.
you ill notice the slalom ends as the CCC goes through its sequence. Congestion is good reversal territory and so it the first half of convergence. Use centering to set up your brackets outside of scalpimg. (scalping, if any is on the higher centering volume.)
with brackets arond 13:00 plus (like now) you get into the BO and if it fails you slalom with a reversal if it goes then the stop log is your focus.
reminder. Use what you now know for wsh trades. you will notice that you do get out with small prof from now on because you are conscious of the periodicity of the congestion and it givesyou a positive attitude that a swing will come up to get a flat or better exit.
aswe stop all losses, you will see a big shift in money velocity over the week of trading.
We are getting to several good strong monitoring goals at this point.
With regard to fitting stuff together. Try to operate off the 5 min primarily. This will take the "suddenly" thinking out of the picture.
Second, I do see people here posting sequence segments. they are really a good improvement on being conscious of market flow.
In the summmer, it is good to calibrate yours selves to a lower level of trading. This means that leeser volume will probably cause the same prior type reaction and that lesser volume will sustain a trend.
As you keep stop logs, if necessary you can go to a faster fractal for mini formation details. Don't get in the habit of being on the 1 min ever though.
When you see that the stoc stays entwined on the tape lines (80/20) it means that there is a slower than rocket level trend still going on. At the same time when you see the channel not getting to the left side, you correctly are going into the slalom "change" mode that calls for reversals. As people catch on to the periodicity (You are speaking of it now) it gets much easier to squeese out slaloming max points. You make them both ways on the slaom so they do add up.
I see that mostly everyone has the rockets nailed now. and you are getting points 1,2,3 done and are willing to move point 3 as required.
you ill notice the slalom ends as the CCC goes through its sequence. Congestion is good reversal territory and so it the first half of convergence. Use centering to set up your brackets outside of scalpimg. (scalping, if any is on the higher centering volume.)
with brackets arond 13:00 plus (like now) you get into the BO and if it fails you slalom with a reversal if it goes then the stop log is your focus.
reminder. Use what you now know for wsh trades. you will notice that you do get out with small prof from now on because you are conscious of the periodicity of the congestion and it givesyou a positive attitude that a swing will come up to get a flat or better exit.
aswe stop all losses, you will see a big shift in money velocity over the week of trading.
Try stepping back for a minute. Everyone myself most off all wants to take on more than they understand. Start with just trading pure rockets.
the only criteria both stocs above 80 (below 20)and macd above .4 (below -.4).
close out when fast stoc leaves the range
then when you see entwining hold on a little longer.
its frustrating because most of the rockets will fail, but once you 'see' that then it becomes a lot easier to see the next part; reversals out of non-entwining rockets....
thought this might help
good luck
the only criteria both stocs above 80 (below 20)and macd above .4 (below -.4).
close out when fast stoc leaves the range
then when you see entwining hold on a little longer.
its frustrating because most of the rockets will fail, but once you 'see' that then it becomes a lot easier to see the next part; reversals out of non-entwining rockets....
thought this might help
good luck
Newby,
the time periodicity tool is ridiculous. with out it I would have gotten burned today after the rocket. I am still working on recognizing when it works well and getting the period earlier but this gets a big
thank you again Jack
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