The Stochastic Indicator

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oops (sorry Jack). I did not see your post:rest of day

http://www.elitetrader.com/vb/showthread.php?s=&postid=305223#post305223

First thing I noticed I did wrong was I did not use pt#1 from previous day. I know I’ve made this mistake before and just have to remind my self everytime I catch myself not doing it.

Okay using the stoc (5,2,3) when it hits a rkt band (>75%, < 25%) is a signal too. Just having a hard time how to integrate it in with other stoc(14,1,3):
i) The stoc(5,2,3) may not always be an earlier signal than the stoc(14,1,3) ?
ii) if stoc(5,2,3) expires from rkt status the other stoc(14,1,3) may still hang in there. So leaving the rkt band is not as significant as entering the rkt band for the stoc(5,2,3) ?

It also looks that you are noting the macd xover points in relation to the stoc(5,2,3) rkt signals ?

{ sorry, did not mean to confuse here }
 
I was out most of day, sorry

flat day.

1. trade 5 was first rocket.

2. The icebergs were like slaloms. Key off the MACD xovers(absolute) as STOC 5, 2, 3(relative) does it's thing.
 
I have a question regarding end of day rockets. Today, at the end of the day, we had a rocket short for about an hour. The rocket created a second pt 3(around 3:30) and failed to traverse to the other side of the channel. therefore, indicating end of short trend. The price then hit the right side of the channel and then proceeded to make the traverse to the left side(never made it) breaking the previous low.

My question is does a rocket trend at the end of the day have a higher probablility of continuing rahter than reversing even though it didnt fully traverse to the left side after the second pt 3?

**either way(wash story), i re-shorted at the price i got long at as price broke through my buy price as price was trying to get to the left side of the channel.
 
I've been lurking on this thread for a long time, but have only started trading full time in the last two weeks. I'm still working on my patience-- I typically anticipate too much in the first half of the day, calm down and get most of it back on the afternoon moves.

I noticed today, after market close, that as a beginner with only 2 rocket trades today (the long in the middle of the loopy iceberg up, and the EOD short) the picture would have been much clearer (and more tradeable) had I stepped out to the 15 min.

The 15 min shows long rocket from 12:15 to 14:45, and the short rocket at the end of the day. It would have been much less stressfull than taking the rockets on the left edge of the channel, and in the case of the 12:15 rocket, kept you in long enough to be profitable.

I'm still curious as to how to figure out which fractal is the 'operating fractal' for the market in a given timeframe. It seems like this is one way beginners can 'cheat' their way to a higher money velocity without the dangers (at least for me) associated with guessing what the wandering stoch is going to do next when it's hanging out at 69%.

regards,
laz
 
I took it today on the 5min for 1.5 pts, because the volume seemed 'right'. Of course, then I tried to reenter and burned the 1.5pts away.

Not saying it's the right thing to do, just that I did it.

--laz
 
Quote from laziz314159:

I've been lurking on this thread for a long time, but have only started trading full time in the last two weeks. I'm still working on my patience-- I typically anticipate too much in the first half of the day, calm down and get most of it back on the afternoon moves.

I noticed today, after market close, that as a beginner with only 2 rocket trades today (the long in the middle of the loopy iceberg up, and the EOD short) the picture would have been much clearer (and more tradeable) had I stepped out to the 15 min.

The 15 min shows long rocket from 12:15 to 14:45, and the short rocket at the end of the day. It would have been much less stressfull than taking the rockets on the left edge of the channel, and in the case of the 12:15 rocket, kept you in long enough to be profitable.

I'm still curious as to how to figure out which fractal is the 'operating fractal' for the market in a given timeframe. It seems like this is one way beginners can 'cheat' their way to a higher money velocity without the dangers (at least for me) associated with guessing what the wandering stoch is going to do next when it's hanging out at 69%.

regards,
laz
More...

i'm mostly editing now. The topic is "taping". There are two tapes one is for the 20/80 so you can't see that part of stochastic and the other is taping as a way to view to proper fractal.

This is the part you want to know about.

go to slower and slower fractals. You will see at some point that the barfill the channel usually. This looks like a "tape" between the bars. Like each bar just trades in the channel. This is the fractal.

now look at the indicators. They all work just as usual.

this is a very "no sweat" way to be making money continupusly. I refer to this as SCT meaning seamless, continuous trading.
 
Quote from bubba7:



i'm mostly editing now. The topic is "taping". There are two tapes one is for the 20/80 so you can't see that part of stochastic and the other is taping as a way to view to proper fractal.

This is the part you want to know about.

go to slower and slower fractals. You will see at some point that the barfill the channel usually. This looks like a "tape" between the bars. Like each bar just trades in the channel. This is the fractal.

now look at the indicators. They all work just as usual.

this is a very "no sweat" way to be making money continupusly. I refer to this as SCT meaning seamless, continuous trading.
More...

Today the long first part was pleasant on the 30 min and then for the late pm short you could best use the 15 min.
 
Jack, a question for you:

I've seen you use the term "pro rata volume" and am not sure how to measure trend volume.

Any time frame has, to some degree, an arbitrary element to it. Using the 5 minute time frame as an example. There is no guarantee the beginning of a trend will start on a 5 minute demarcation in time. It is just as possible that one 5 minute increment may overlap a trend component as well as a retrace component.


Any price bar may have multiple and conflicting elements to it. Using the 5 minute time frame as an example. There can be a lot of buying as well as selling in a single one minute interval contained within a 5 min increment. Where the open and close occur in relation to the high and low of the price bar I would hope dictates the significance of the price bar as well.


So how are these factors taken into account when measuring to see that trend levels of volume are being maintained ? Using a 1m/5m fractal pair as an example, does one zoom in on the anticipatory fractal ? If so, is the type of the price bar taken into consideration ( cross, hammer, rising star, up/dwn etc.) What rules are used if any?
 
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