The Stochastic Indicator
- Thread starter jack hershey
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To all those who have actually read this entire thread!!
I felt like I wanted to get this onto some hard copy so I could read it while away from any PC.
It turned out to be 699 pages thick on 8.5 by 11 paper with 1/2 margin and standard font. I decided against printing it.
Jack has culled this down to 52 pages on the toolbox thus far.
I has occured to me what a large undertaking condensing this material really is.
It also made me realize just how much we have learned.:eek:
I felt like I wanted to get this onto some hard copy so I could read it while away from any PC.
It turned out to be 699 pages thick on 8.5 by 11 paper with 1/2 margin and standard font. I decided against printing it.
Jack has culled this down to 52 pages on the toolbox thus far.
I has occured to me what a large undertaking condensing this material really is.
It also made me realize just how much we have learned.:eek:
i always want to give rockets as much room as possible...i had a very small gain on this and gave back several points, but in order to get the 8 to 10pts you are gonna have trades like these...no big dea..it happens and move onl.
anyways there was a dbl bottom on the 5m and a macd divg on the faster fractal 1/2m chart, vol was lower on the 2nd half of dbl bottom....these are all flaws...there would be nothing wrong exiting earlier, but myself i give the rocket the benefit of the doubt b/c i know the the big runs can do this and then roll over.
why do i stay in...b/c i think the worst thing i can do is start exiting before the rocket is over then i am guarenteeing i will miss the big moves that make your week...and that would drive me crazy.
i don't want to get into the habit of early exits....at some point in the future my intuition will be better and then i can do some things different...but i know how i am...if i exited and it rolled over...man would i be pissed for exiting before the rocket ends...its all about your particlular approach.
don't worry about this one particlular rocket..you have to judge it over many rockets.
not always the best way, but this is what i do.
anyways there was a dbl bottom on the 5m and a macd divg on the faster fractal 1/2m chart, vol was lower on the 2nd half of dbl bottom....these are all flaws...there would be nothing wrong exiting earlier, but myself i give the rocket the benefit of the doubt b/c i know the the big runs can do this and then roll over.
why do i stay in...b/c i think the worst thing i can do is start exiting before the rocket is over then i am guarenteeing i will miss the big moves that make your week...and that would drive me crazy.
i don't want to get into the habit of early exits....at some point in the future my intuition will be better and then i can do some things different...but i know how i am...if i exited and it rolled over...man would i be pissed for exiting before the rocket ends...its all about your particlular approach.
don't worry about this one particlular rocket..you have to judge it over many rockets.
not always the best way, but this is what i do.
We will focus soon on all the aspects of unfolding events. We have several things to coordinate in a smooth manner. price, its formations and pace and channel activity; volume and it's change and magnitude; MACD, and STOCs (3).
The level you operate on with rockets is the cardinal level where we learn as we make money this coordination.
the bottom line is that we find out as things unfold, they work in "normal" ways that we have become familiar with. It is "sriving a car" type learning. Then, just as in driving a car, you focus on "flaws" in gettting to where you are going.
Your progress in getting to a level of consciousness like driving, takes practice, skill development, knowledge and a car. This is a multi level consciousness. I am the gas station attendant and the car dealer and driving coach. You can see that after awhile, I am not needed very often.
The idea is the get to easy street using CPM. CPM is like STP it makes things all run better because there are no side trips to go from A to easy street.
This explanation sounds corny, but in fact I have planted several understandable pictures.
Now to answer your Q. I will state it in one sentence that you need to put in a plaque. "plaque this" will precede the sentence.
You spent 3 bars getting sync.
Indicators gave you "go.s" (MACD ,.4) Stoc (short)
enter short on sync. Hit a key. or click a moose.
Get points 1,2,3.
Draw TWO lines parallel.
The market rides the left line. (this it the "profit" line).
At 10:20 the bar drops to a low and "plaque this": the price faills to traverse the channel
AS this happens you check:
volume
MACD
STOC
You see:
volume is pro rata okay.
MACD has done three things to say "get ready for exit/revrsal:
fast line max low, lines converge, lines xover lines begin a very little bit to diverge,
Stoc is real close to 20 line and coming towards it to potentially xover.
for price formation you see:
Black
close value moving upward
close value inside of prior red bar.
you are quirming physically at 10:16, 17, 18, 19, 20. Long squirm.
the flaw card you piucked up first was: a large wooden plaque flaw card. It says: The price fails to traverse the channel. It is in gold leaf on rose wood and the edges are illuminated by monks at the chartruese factory near Dijon, france.
you turn the plaque over. It has layers of paper cards pasted on it. the top expert one says "reverse". you remember when the first card was pasted on it at thetime you were abeginner. Then the card said exit to sideleines, this rocket is ending and you will see CCC next.
I am being brief here. and painting picturesthat are positive and that give you a strong sense of happiness that comes from knowing you are on the ball. read you post. See that you have "it".
This exchange is like a picnic on the side of Mt. Blanc after having picked up your plaque at the chartruese factory. Personally I loved the tour there. I was driving a 1960 190SL black mercedes Ipicked up in Copenhagen for cash on vacation the next to last year I was employed. I was headed to the French riveria that month of vacation that IBM graciously kept paying me salary. I had started with 300 bucks. Keep this kind of stuff in mind.
For those who are into driving, I traded the 190 in for a used 300sl silver gull wing. You keep taking money out of the markets after awhile.
The level you operate on with rockets is the cardinal level where we learn as we make money this coordination.
the bottom line is that we find out as things unfold, they work in "normal" ways that we have become familiar with. It is "sriving a car" type learning. Then, just as in driving a car, you focus on "flaws" in gettting to where you are going.
Your progress in getting to a level of consciousness like driving, takes practice, skill development, knowledge and a car. This is a multi level consciousness. I am the gas station attendant and the car dealer and driving coach. You can see that after awhile, I am not needed very often.
The idea is the get to easy street using CPM. CPM is like STP it makes things all run better because there are no side trips to go from A to easy street.
This explanation sounds corny, but in fact I have planted several understandable pictures.
Now to answer your Q. I will state it in one sentence that you need to put in a plaque. "plaque this" will precede the sentence.
You spent 3 bars getting sync.
Indicators gave you "go.s" (MACD ,.4) Stoc (short)
enter short on sync. Hit a key. or click a moose.
Get points 1,2,3.
Draw TWO lines parallel.
The market rides the left line. (this it the "profit" line).
At 10:20 the bar drops to a low and "plaque this": the price faills to traverse the channel
AS this happens you check:
volume
MACD
STOC
You see:
volume is pro rata okay.
MACD has done three things to say "get ready for exit/revrsal:
fast line max low, lines converge, lines xover lines begin a very little bit to diverge,
Stoc is real close to 20 line and coming towards it to potentially xover.
for price formation you see:
Black
close value moving upward
close value inside of prior red bar.
you are quirming physically at 10:16, 17, 18, 19, 20. Long squirm.
the flaw card you piucked up first was: a large wooden plaque flaw card. It says: The price fails to traverse the channel. It is in gold leaf on rose wood and the edges are illuminated by monks at the chartruese factory near Dijon, france.
you turn the plaque over. It has layers of paper cards pasted on it. the top expert one says "reverse". you remember when the first card was pasted on it at thetime you were abeginner. Then the card said exit to sideleines, this rocket is ending and you will see CCC next.
I am being brief here. and painting picturesthat are positive and that give you a strong sense of happiness that comes from knowing you are on the ball. read you post. See that you have "it".
This exchange is like a picnic on the side of Mt. Blanc after having picked up your plaque at the chartruese factory. Personally I loved the tour there. I was driving a 1960 190SL black mercedes Ipicked up in Copenhagen for cash on vacation the next to last year I was employed. I was headed to the French riveria that month of vacation that IBM graciously kept paying me salary. I had started with 300 bucks. Keep this kind of stuff in mind.
For those who are into driving, I traded the 190 in for a used 300sl silver gull wing. You keep taking money out of the markets after awhile.
OK for a while I was appreciating this thread, but now it is starting to bug me again. I like the general concepts on market transition here, ie breakout to consolidation to breakout etc...But I must admit I have no clue what you guys are talking about the last few days. May we have a tranlator please?
I am going to spin out the alphabetic Bold stuff. I have added below the Frebruary only stuff in chron order. I will annotate each line as a paragraph. there will also beago to in two ways. Got to the part month____, Part____ of version II and See_____ entry of the spin out.
The spin out will be very handy to use as a refresher and as a way of thinning out stuff where the sourse text is too dense.
Here is the first portion listed in chron order, See attached also:
The spin out will be very handy to use as a refresher and as a way of thinning out stuff where the sourse text is too dense.
Here is the first portion listed in chron order, See attached also:
Some observations in Learning How to Slalom
Great thread, am learning a lot. There are some real aficionados here and am falling behind the curve so to speak (lol). One thing I am learning is that it is one thing to paper trade, quite another to do it with a real time simulator and totally different to do it with real money. I am just trying to learn how to make a buck here and am very appreciative of everyoneâs contributions. My skill level currently is not sufficient enough to slalom. Far from it.
The way I see it a trend can end in one of three ways:
a) Stall, possibly with varying degrees of retrace, and then continue
b) Break out into a sideways trading range
c) Or reverse
Leaving the first two for the time being and focusing on just the third, are there opportune moments in the trading day when a reversal is imminent and the signs are telegraphed before it happens?
As an example, when a short trend expires, what qualities can be attributed to it that might indicate a severe reversal? Did the pace accelerate as the trend expired? Did the volume peak at the very apex of the channel? Did the steepness of the decline accelerate as the channel broke? 6/12 , 7/3 , 7/14 are examples that comes to mind.
Another scenario comes to mind. Typically, the mornings' trading range creates a high (or low) for the day. For the afternoon to break the HOD (or LOD) effort is needed. This requires volume. Discretion is used in calibrating this. If the volume does not show up when hitting the resistance (or support) level, then many times I consider a reversal( 6/24 - hod, 7/14 - hod, 7/16 - lod are some examples that come to mind). This precludes scenarios where the whole trading day turns out to be rocket oriented, 5/2 as an example.
I may be missing the big picture here, but one component of 'slaloming' is to consider a reaction to a support/resistance level that does not break ?
I also question whether or not to just jump in at any moment in slalom territory if I have missed the opportune entry (i.e. at the end of one channel and the beginning of another). An example of an opportune moment being 7/16 11:15, a reversal using vdu/inside bar combination for the 4 'oclk drift that followed mid afternoon. Signal levels as measured by volume and macd peaks may be very low or non existent to begin with. There is such a thing as a cut off point of no signal and just drift so to speak.
Hope these remarks are not too obtuse, inaccurate or off the beaten track.
On a personal note, I find Mr. Hersheysâ perspective on price/volume relationship extremely helpful and always pay very close attention to volume and price on charts as well as any post that contains the words volume or price (lol)
(this is such a great thread
Great thread, am learning a lot. There are some real aficionados here and am falling behind the curve so to speak (lol). One thing I am learning is that it is one thing to paper trade, quite another to do it with a real time simulator and totally different to do it with real money. I am just trying to learn how to make a buck here and am very appreciative of everyoneâs contributions. My skill level currently is not sufficient enough to slalom. Far from it.
The way I see it a trend can end in one of three ways:
a) Stall, possibly with varying degrees of retrace, and then continue
b) Break out into a sideways trading range
c) Or reverse
Leaving the first two for the time being and focusing on just the third, are there opportune moments in the trading day when a reversal is imminent and the signs are telegraphed before it happens?
As an example, when a short trend expires, what qualities can be attributed to it that might indicate a severe reversal? Did the pace accelerate as the trend expired? Did the volume peak at the very apex of the channel? Did the steepness of the decline accelerate as the channel broke? 6/12 , 7/3 , 7/14 are examples that comes to mind.
Another scenario comes to mind. Typically, the mornings' trading range creates a high (or low) for the day. For the afternoon to break the HOD (or LOD) effort is needed. This requires volume. Discretion is used in calibrating this. If the volume does not show up when hitting the resistance (or support) level, then many times I consider a reversal( 6/24 - hod, 7/14 - hod, 7/16 - lod are some examples that come to mind). This precludes scenarios where the whole trading day turns out to be rocket oriented, 5/2 as an example.
I may be missing the big picture here, but one component of 'slaloming' is to consider a reaction to a support/resistance level that does not break ?
I also question whether or not to just jump in at any moment in slalom territory if I have missed the opportune entry (i.e. at the end of one channel and the beginning of another). An example of an opportune moment being 7/16 11:15, a reversal using vdu/inside bar combination for the 4 'oclk drift that followed mid afternoon. Signal levels as measured by volume and macd peaks may be very low or non existent to begin with. There is such a thing as a cut off point of no signal and just drift so to speak.
Hope these remarks are not too obtuse, inaccurate or off the beaten track.
On a personal note, I find Mr. Hersheysâ perspective on price/volume relationship extremely helpful and always pay very close attention to volume and price on charts as well as any post that contains the words volume or price (lol)
(this is such a great thread
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