The Stochastic Indicator

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"they are so smart that they skip steps and do not actually know what they are doing well enough so that they get to live in the surprise and drawdown world sadly ever after."

Um that would be me - i definately tried to skip iceberging.
I will now try to iceberg and simply observe the slaloming to get those sequences down.

9:46 long (long rocket in on 1 min macd xo) out a little early
short the failed rocket out at 50% stoc
look to see if it is going to continue down or rezoom- it started ticking back up on increasing volume so i am looking for a rezoom.

ticks down on decreasing volume looking for oppertunity to get long- got long when it started up- volume continues to increase so all is good
10:16 volume spike down- a fake out
??? eventualy how would i have known to stay in there- or if i washed, which i did, what should have been my reentry signal?????

at 10:25ish I thought we were observing a penent type formation and missed the start of that break out, bad shold have no bias

hears to the learning process
 
Fbo=failed break out. I also wanted to make a little request. Jack has been stressing the C&R because it would lead to certain revelations. I have tried and will try again to C&R. I jsut dont fully understand the process. If somone could enlighten me, it would be much appreciated. What i think i know is:
Cross out any that occur twice and then circle back occording to peaks;

1 peak per 15 minutes= circle 4 back
2 peaks per 15 mnutes=circle 3 back
3 peaks per 15 minutes=circle 2 back




thanks,

jc
 
Today was a great learning day for me. Added something new to my sequence. I hope this isnt confusing.

Failed rocket reversal-->Stoch diverge out of 80-->macd xover-->stoch near 50%-->volume decreasing dryup/pullback--> volume increasing/bo-->price reverses back too where it came from-->stochs reverse back into 80-->***Price break previous high made from failed rocket--> price reaches other side of channel created-->bounces off channel and retraces back to the right side.

just a few things on the sequence above.

In the above sequence, When their is volume drying up and stoch are at 50%, The volume can increase with price resuming back into the original trend with stochs crossing over the 20 on the other side for a rocket/rocket failure on the 20 side.

At the *** in the sequence, price could have also bounced off the previous failed rocket high instead of continueing thru it.

I know there are a lot more but i wanted to add some of the sequence stuff i saw today before the weekend started.



jc
 

Great thread here, am learning alot and am very appreciative of everyones' insights. Great discussion. I was curious about using trailing stops while in a position.

In hindsight Friday afternoons' trading range might have been a nice match for a pair of stops as a bracket set up. Even though I did not neccesarily see CCC so to speak, as it continued to bounce between R/S while in the trading range.


But I ended up entering at Market and used a trailing stop.


--------------------------------------------------------
14:00
- afternoon trading rnge HOY <----> R1
- sequence repeating
a)top bars pull down
b)vdu bar
c)mini b.o(p,m,v)
d)volume peak
e)bounce off of support and repeat



14:14 Enter short @ Mkt
- b.o.(p,m,v)
- break out of trading range. Almost never lasts more than 3x, each hit on R/S eats away bids/asks resources (?)
- initial trnd vol marginal ~ 3k

14:20 OOPS Exit: stopped out with initial offset of - 1 pt at ~100 % retrace
---------------------------------------------------------

lament lament lament, trend continues (lol)



Besides using price formations as trailing stops, What would be a reasonable offset for the initial stop right after the position is entered ?



Obviously a better entry point on my part would have helped here, say around 14:12/14:13. But I missed it. Heck, there are 405 minutes to a trading day. It takes discipline to be vigilant every minute of the day(lol)
 

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Quote from bubba7:




This is an observation.

People get intrigued with the market and they set up all kinds of stuff to do things.

you will notice that I often suggest to people to put the stuff I do into their operation as they choose. I also suggestthat they get rid of redundancies as they go along.

There is a basis for what I say and how people make these changes. You only get the right to do stuff based on the money you are making.

I'm following many people here asthey progress and I sometimes request stuff from them to see better where they are.

You fit into a category that is a significant one. As you focus on innovations you are passing up getting rich sooner. There is a sharing in the money making. The market does some things and you do others. You are like what you are now and you are bending the market to fit into a mold you are building for it. That is just an observation.

I am an advocate of everyone being rich. It is possible to get rich in a short time by following a path that has very few hazzards. you do not need much money to start. for money management you use a fringe consideration. You use the least money that you can and secondly you only enter when you have the simplest money making opportunities. Along side this you focus singularly on learning to leave the market with no loss.

This above paragraph and all the top part say one thing.

The two pieces are in the greatest contrast that could exist for almost anything.

Here is an admoninition: everyone here should dig up the minimum capital, set up an account and trade one contract. Make money and do wash trades. Rockets and washing. Icebergs and washing. Slaloming and washing.

Next after you are rolling along at a slalom 5 contract level go into the optimization stuff.

I glide with an ex world champion glider acrobatics guy. (He was invited to the 40th anniverary of the Tokyo Club to demo.) whyat he said to me one day at the top of a hammerhead was this: "Jack I really like how you do it and you know why you do it the way you do it" This is not an ego comment; what it is is a statment about how things are best approached. If you know what's up under all conditions in flying, you can work through most stuff that comes up. I vote for going through levels of performance. If you denigh yourself the opportunity to develop skills and you are skipping steps, you are never going to compete where optimization is what is on the table.(sitting there realizing the full potential of the market) What you need to go for is a permit to do acrobatics at events where you have a zero altitude minimum.
More...


This post has been pivital for me.

I went back over the last 4 days and re-read this entire thread. It is notable that the reading has been MUCH easier. Something clicked. It was like Neo seeing the Matrix for what it is. The market moves in slow motion now, I wish I could truly relate why.

I have seen the flaw in using the moving average ribbons.
I have also seen the flaw in using Gann 1/8ths. These are how I made money in the past.

One was great for trends, the other great for range bound markets, neither handled the transition well at all, which is why I finally opened this thread after watching it sit for 2 months.

I understand clearly now the ability to make money every day.
Reversing out of the failed rockets and using the 1 min chart to slolom back across the channel was my primary key. Points 1-2-3 was the other key.

Thanks for the fix, Jack. Thanks to Dawg and Vorzo, and Tampa, for documenting their own process of evolution.

Regards,
oddi
 
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