The Stochastic Indicator

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Quote from colina:

I was wondering where the tape is today? I see white space on the 30 min and a very very slightly sloped tape on the 60m ? I am assuming a rocket this morning from around 10:45 to 12:05 ish? Or is that incorrect ? Would the rest be considered slalom territory? If so, what would be the change mode indicator to reverse, 5 min macd xover points ? I am having a hard time integrating the stoc(5,2,3) to use today. At what point in the trading day would the conclusion be made that this is slalom territory if indeed it is?
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Use the 30 min for Thursday. Anyone can look at it a day late and quarterback as I am.

If you were following the market on Wednesday,though, you would be looking at Thursday Am the same way. This would immediately put you on the 30 min.

On the 30 min you get to see that the Thursday is a very slow paced day from the beginning. This will get to be deja vu for you after a few seasons. It takes a lot of time to gain repeated experience with time consuming slow paced narrow range insipid days. They take a lot of time to play out as you learn to stay sidelined or do long slow holds having low money velocity. On the toher hand, rockets are the easiest things to see, make money with and are the least risky.

i bet alot of people here are not using a 10 point scale on the 5 min. If they did and they looked for a tape channel and went to the 30 minute, they would see that being in the market right now is not a good idea. The best thing to do is accept that there is congestion and volume is running at 10k which is not a potentila rocket level.

What follows congestion is convergence and centering. At 13:15 on a Summer Friday going into centering, there is a good chance that the next event is the weekend. It takes seasons to get this down because the topic takes time to experience and it is not always there as a repeated frequent example.

I will have version II of the months knocked out soon. At that time you will have some good time compressions. I have figured out an illustration plan as well. I am going to make an atlas of the market's operation. Then I will go back into the journal and link it all up. When the spin outs of the bolds are written I can also refer to the atlas. This will ameliorate the seasons problem for most people.
 
Quote from bubba7:





I will have version II of the months knocked out soon. At that time you will have some good time compressions. I have figured out an illustration plan as well. I am going to make an atlas of the market's operation. Then I will go back into the journal and link it all up. When the spin outs of the bolds are written I can also refer to the atlas. This will ameliorate the seasons problem for most people.
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I can't wait. In spite of my recent whining, forcing myself to take rocket trades at a beginner level is making me see the market in ways I never have before. Oh boy, did I fight it. It's also forcing me to just trust, something I desparately need to learn.
 
Quote from bundlemaker:



Brutal is an understatement. Over the past few weeks I"ve taken 14 rockets, best gain is 1/2 point, worst loss 3 points, which was this latest rocket, which I held onto a bit more than I should have. Figured I've just been bailing too soon, apparanetly not.

I'd swear to god every rocket I find on paper/simulated works like a charm. Every one with real money... well you get the story.
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What you are doing is very very important.

You will make more money in the future as aconsequence of this than any other thing almost.

waht thei will lead to, absolutely, is slaloming in active markets (non Summer).

Going to get very smooth at this. It is like feeling numb almost when the market is dull. The market is not going to be so dull most of the time.

We are in a place right now that is setting the climate for the future societally and culturally speaking. The saying that "it can't get any worse" is trite because it usually does. This limbo is going to take us into Labor Day.

I am trying to nail down 12 hours a day on this edit to congeal stuff. There are some really terrific contributions here. The people going through this process get one thing: an experience.

That experience makes it possible for them to be able to use what I will produce 6 to 9 months out. That will be a cogent "guidebook" for experts in SCT. Not long but very very deep. A twin strategic strategy is required for SCT. You move your indicators to the pace; you read sequences (flaw detection, primarily) and you, at market C&R to stay "pushed" by smart money. Read dawg's posts.

Some people here are surfacing in ET who trade large capital in indexes. Search the word "zone" for some posts I have made on thier turf. Money management comes up when you have money to manage. We are headed there. For smart money lurkers here: we will address all forms of risk management in zero sum strategies. We will move up to full contracts at some point and esp the T&S and the subsidiary derivative indicators.
 
i know you do not like the length of this.

Version I is shorter

Version II is going to be shorter as well.

I will pare version II to a greater extent.

I find when I take this stuff to word to work on it sometimes it is 10 point type.

By saving it into another place you may be able to save space with type face margins and page length.

I am shooting for Laobor day to have stuff worked through.
 
Quote from oddiduro:



Trendy,

Jacks language style is unique, and I fear something getting lost in the translation.

So, conduct a search.

Use "summertime" as the key word, and "bubba7" as the user, and you will find the post that you need to commit to memory.

Regards
Oddi
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Uh, O.K., I'll put that right next to Jack's statement that beginners trading rockets should make 90K/yr/contract.
 
Quote from trendy:



Uh, O.K., I'll put that right next to Jack's statement that beginners trading rockets should make 90K/yr/contract.
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Well Trendy, you asked, I responded, now you don't like the answer.

Typical woman.:D
 
Quote from oddiduro:



Well Trendy, you asked, I responded, now you don't like the answer.

Typical woman.:D
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No, I asked where you got the idea we're in a period of "very low volume". I'll bet it's the same place where you came up with the idea I'm a woman.
 
Quote from trendy:



No, I asked where you got the idea we're in a period of "very low volume". I'll bet it's the same place where you came up with the idea I'm a woman.
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I guess you get to blame Jack for that too:)

jack hershey
Elite Member

Registered: Feb 2003
Posts: 759


02-23-03 01:08 AM
Re: Attempt at "Fast Trades"
Quote from dawg:

In an attempt to learn more and it seems others are interested I am trying to trade jack's 'fast or rocket trades'. I have my screen setup as Jack suggests:
5m Price
Volume
Stoch (5,2,3)
Stoch (10,2,3)
Stoch (14,1,3)
MACD (5,13,6)

and have a 1min screen with same info to get a better picture as what potentially lies ahead for the 5m.

My understanding of the Fast/Rocket Trade:
Use the Stoch (14,1,3) enter LONG when both the fast and slow move above 80 and exit when both leave the 80. Enter SHORT when both the fast and slow are below 20 and exit when they both leave the 20. Ignore anything else on the stoch indicator.

Trade #1:
Stoch (14,1,3) 9.38(fast), 10.74(slow)
10:20 Short @ 845.00
10:43 Cover @ 847.00
Total: -2.00 Day: -2.00

Comments: Shorted on the move to new lows. MACD was below ) and sloping downward the first few minutes of the trade.
At 10:35 the stoch read 30.00(fast), 20.78(slow) as this was barely over 20 and not trying to picky, I would wait and see what the next bar brought. At 10:40 stoch was 25.00(f), 22.25(s) there was a little spike up over some reversal bars so the i closed my short. I did not enter again b/c the next potential entry was after 11:15 and the MACD appeared to be very choppy and directionless.

Trade #2:
Stoch 12.50(f) 12.10(s)
1:25 Short @ 841.75
2:02 Cover @ 842.00
Total: -2.25 Day: -2.25

Comments: Market making new lows of day MACD below 0 not by a lot but faster line moving away from slow line. At 13:50 the lack of follow through in the nq to make new lows while the es made new lows concerned me (negative div. in my mind). At 1:44 the 1m MACD XO and at 11:55 the 5m MACD XO. Trade was exited with the stoch at 36.36(f) 25.76(s) 2:00 5m bar for a tiny loss.

Trade #3:
Stoch 95.45(f) 87.96(s)
3:27 Long @ 842.75
4:00 Sell @ 844.75 (market close)
Total: +2.00 Day: -0.25

Comments: Upward sloping MACD above 0 and moving away from slower line. Other stoch (5,2,3) and (10,2,3) also in their respective buy zones. Concerns during trade were at 3:42 the 1m MACD XO and a 1m trend line was broken. Both Stochs never closed belwo 80 on the 5m. Stayed in trade and closed at 4pm.


Great set of comments. For future stuff it is best to set your price chart to 10 point scale. The two point one you are using clouds your ability to "see" when the market is flat.


This day and the next were flat so no trading was possible.

I will go back to the very beginning as the days go by. We will not play on flat days. wewill use MACD to tell us if the day is flat. Do this: check foir flatness by staying sidelined when the histogram on 5 min is less than 0.4 for the time being.

Flat days do not have sufficient volatility to make money. they are valuable for practicing "wash" trades. Just do wash trades when you are in and not making money on a flat day. do at least three to five a wekk if you get the chance.

move your chart order so price is on top and then volume and MACD then the Stocs. They are correct as you have them.

Watch my replies to trendy. She is an accountant and lawyer so I am going to let her cheat everyday to give her an edge.:eek:
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See Trendy,

That's the value of actually PRINTING the posts.

You get to pick out all kinds of details.

The answers to all your volume questions are there, truly they are:)

Regards,
Oddi
 
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