bringin sexy back - stochastics

like most people ive made money lost money always lookin for somethin that works bla bla blaaaaa were all really tired of talkin about that arent we?

well finally "found" somethin its actually the slingshot system by buffy or i think its called "bline" and i made my own version which is slightly a bit different from his template.

this works on any timeframe really. but i prefer either scalping it on the 5 min or 15 or 1h maybe 4h.

money management? thats up to u. my stops are discretionary and i look at previous highs or go for 10-15 pips if im trading 5min or 15 min it really depends on alot of stuff. but im sorry i cant help u there since ive done very well on counting on my experience when it comes to stops. same with targets. at least aim for the same as the stop u use. plus this system was made for nasdaq and SnP and its deff different from fxxxxxxx.

but this is not gonna be too worrying because im only gonna write and show the best trades. no reason to over trade and no reason to enter a half assed trade or one ur not too sure off. only look for the best best trades so that ur stop can be tight and u can secure an easy 25-30 pips a day on the 5 or 15 min. i can almost assure u theres a perfect trade everyday.

the setup:

stochastics:
k:20
d:10
slowing:20

another stochastics in the same window. this one is longer term.
k:50
d:10
slowing:20

3rd stochastics in the same window. this one is for entry.

k:5
d:3
slowing:3

first indication: what u need to do is first look at the 20 and the 50 and see what they are doing. this is not necessary but when the 20 is above the 50 then thats my first hint the trend is up
when the 20 is below the 50 then trend is down.
sometimes they are really close to each other which should make u cautious about taking trades.

second indication: you want the 20 to be crossed down with its signal line and the 50 to be doing the same. if both are crossed down with their signal lines then price is trending down and we look to sell.
vice versa for when they are crossed up.

taking trades: when the 20 and the 50 have crossed their signal lines down we look at the 5. we want the 5 to go into overbought if the trend is down. basically we are looking for a pullback. as soon as the 5 cross back down we enter. if a nice tiny little consolidation formed and 20 and 50 are trending down and nicely then enter at that even if the 5 didnt make it very high.

vice versa when the 20 and 50 are trending up
the examples will clear up everything and ill be posting a few after im done with this post but im gonna add some remarks and then attach the first image.

remarks:

- the cross of the 20 and 50 is not so reliable. like an MA cross it can be tricky. but its good to look at because it can keep u away from bad trades.

- when the 20 cross its signal line, look at how steep its going up or down and also look at the space between the main line and the signal. the bigger the space the better the trade will be. same with the slope the steeper it is the better. this is stuff that after a few live and posted examples u will learn to see for yourself and ull know when its nice and trendy and when its being naughty.

- the 5 doesnt have to pull back all the way into oversold or overbought area. wait for a consolidation of price or for stochs to cross then enter. in a strong trend u can easily see when price stalls before continuing.

- im awesome

- if i can think of anything else ill deff add.

- o yea.
perfect long trade:
20 cross the 50 up.
20 and 50 both crossed their signal line up and are slopped nicely
5 pulls back all the way into oversold while price is stalling and consolidating.

- also try adding a 9 ema and a 34 ema (i like the fibo numbers) and when ur about to take a trade check if the 9 crossed the 34 up if ur taking a long trade or down if its a short. this is really just extra confirmation. i dont personally use it unless im really really bored.

ok. u know feel free to add anything and i dont take all the credit but a bit of it for my variations.

ok first chart
the 20 is crossed up with the 50. they have both crossed their signal lines and are moving up nicely. the 5 didnt go all the way down but price consolidated. i would enter at the bar right after the one with the low. basically telling me price isnt going any lower. i wait for it to close then i enter. this is a bit discretionary but thats how i do things. i look for little confirmations. another one is that star looking bar with the low. it has a name the open is the same as the close and it shows indecision so thats another small confirmation..

ok more to come next. stay tuned

why take every trade? only look for the best.
this is a sell on the 15 min.
this method is quiet fun and easy on the eyes.

Look nice .. I will give it a try ... thanks

nice buy setup on the 15 min usdchf
20 over the 50. both crossed their signal lines up. 5 pulls back into oversold. enter at the stochastic cross of the 5.
see theres opportunities in alot of pairs.
ill add some more

perfect trade on the 1 min. with the tight spread on the euro its very doable. but i avoid the 1 min chart because it makes me wanna kill myself. nontheless when things are trending but no signals going to the 1 min can be worth it.

remark: when the stochastics move into overbought or oversold and the 5 pulls back all teh way or a bit then thats a true slingshot. so u can look for those too.

on this chart after the buy, price went up then consolidated, went down a bit and u see the 20 and 50 are above 80 and the 5 pulled all the way back. it wasnt the perfect trade since 20 was starting to slope down but since it was still above 80 and we had reverse divergence it would be a good trade to take.

maybe confusing but after some more examples and some trying out from anyone that is interested, things will be much easier.

How do you go about laying the indicators on top of each other in one window?

Thanks.

hey bagovino
just click and drag stochastics to the same window everytime. make sure u drag it under the line that separates the indicator window from the chart.

hope that helps

a nice sell on the 15 min eurjpy. enter during consolidation or when stoch cross.

remark: trading this method during active markets is prob a better idea than trading during slow times. but i guess trading a pair like eurjpy during the asian session is a good idea

next week and afterwards ill try to post trades in the making or trades that have happened already but my time is gonna be limited because im going back to university and im taking lots of classes since ill be done soon. so basically ill be busy. but if anyone is gonna try this method please tell us ur experience or show trades u took and well damn tell me ur makin money or something. i slowed down on my personal trading because of school but one way to make sure this works when im pursuing my goals and dreams and trading part time is if people test it out and talk about their experience. ill post more examples right now or maybe tomorrow.

yo:

Ya got the first stoch settings as 21,10,20 but your charts are showing 20,10,20...wasssup??? Too many left hooks git ya brah?

na just makin sure someone is payin attention lol

sorry bout that. its fixed

i still cant get all of them in the same window, im using interbankfx mt4 platform, i tried dragging but its not going anywhere

tiago:

drag the first stoch on the chart as normal. then drag the next two stochs INTO that first stoch window...should do it

i cant attach a template or i would. when u drag the stochastics make sure u change the settings each time or else it wont do anything.

2 sells on the eurusd 15 min. also a sell between the 2 if u notice the 5 pulled back a tiny bit. overall woulda been some good trades. look at the 20 and 50 when they slopped up and the 5 pulled back all the way to the 20 line basically oversold area. it woulda been a nice trade but the time of day would have kept me away especially after 2 nice wins.

gotta print out your rules and have that in hand while looking at charts.....back later.....looks good though.....


.....

Nice thread and an interesting approach.

I also use stochastics, but in my system this acts as my trigger.

I was wondering what you use as the signal for your exits. Looking at your charts I see different places to exit using different criteria. Since you have had experience with your system, which actually work most consistently?

hey moonchild

a nice and easy way to get out is when the 5 stochastics goes oversold or overbought. u can exit and wait to see if another signal is happening. i also take in consideration the time frame im using if its 5 or 15 then i aim for 15-20 pips mostly 15. stop is usually 10-15 but since i only look for the best setups then my hit rate is pretty high.
in the example before u can see the first sell when the stochastics 5 pulls back right before the 80 line and then goes into oversold then pulls back for the next sell. in that example, exiting when the 5 goes into oversold masde an easy 15-20 pips each time.

hope that helps

I notice in the chart of post #8 that you have a structure which I call a "bundling" of stochastics. While I do not use these structures in my system I have noticed these while I was working on the combination of indicators for my system. What I had observed is that these are high probability reversal trades. I was wondering whether you use these as entries.

I realize that in your system the 20 and 50 would have to be heading up at the time for you to take the trade, and when these structures happen they would not be heading either up or down, since by definition they would have to be neutral since they are at the point of turning. You might consider using these structures as triggers for your entries. Anyway, you might want to watch them and see whether this type of entry would suit your system.

One thing I really like about your system is that you have a low failure rate and this is something which I have worked very hard to build into my system, although I tend to be looking for a larger number of pips per trade, usually 20 or more. I consider minimizing losses more important than maximizing wins. It is easy to find winning trades, it is much harder to avoid losers. How many newbies have made large amounts on good trades only to see all of it and more get lost on the bad ones?

i see what u are saying. i took a closer look as ive seen em myself too and they can be a bit tricky because if the 20 and 50 are flat and oversold or overbought then u could be trading against the trend. the slingshot occurs when the longer term stochastic is oversold or overbought and flat so u could be entering a trade not knowing its only gonna be a small pull back before the trend continues.
but this formation seem to work better when the 20 and 50 flatten out in neutral territory. between 20 and 80 then taking that type of trade should work plus its psychologically better when it comes to watching it.

i think this example would describe what ur talking about and how i prefer taking that reversal trade if i decide to rather than taking it when the 20 and 50 are oversol or overbought. basically id take it when they flatten in neutral territory.
thanks for making me look deeper into this. it can deff catch nice reversals. as for the main system since u said u look for more pips try it on 15 min or 30 or 1h and aim for larger targets u wont be dissapointed .
a buy on the gbpusd 4h yielded near 400 pips in 2 weeks. with a no more than 50 pips stop.
please feel free to add anything else and post examples if u like or anything else
same for the others

a buy signal? it woulda been a breakeven or small loss maybe even a small win.
2 things would have kept me away. the time of day. it was pretty late and the fact that 20 and 50 are really close together even tho they are trending up nicely. no reason to take half assed trades. no reason to dig for trades either. only the best setups. watch 2 pairs on 3-4 time frames and i can almost assure u u will have a trade or two everyday. dont go trading this during a dead market or holidays or on saturday.
if u dont have time during the day look at longer term charts. 1h or 4h. add a longer stochastics like a 100 and make the slowing 30-40 and look at 1h or 4h charts that way u can get a bit of confirmation if 20 and 50 are acting too fast. ill post an example of that in a second.
heres the half assed buy