Craig Harris Stochastics Method

Notice in the charts above the Stoch lags behind the TDI signals in several cases... pay attention to any small differences when looking at a chart and before entering a trade.

Small differences should be like a flashing light telling you to take another look... or wait on your entry...

Like: Is PA resting (no momentum), Is TDI close to the 68 going long or 32 when going short, is the Stochs confirming an entry, etc...

Good Training Video on Double Tops... Dean Malone - Compassfx.com

http://www.compassfx.com/video/flash/41211/41211.html

Divergence is very helpful once you learn how to spot it.

One thing I would like to add that Dean does not mention. Divergence does not mean you are for sure going have a top or bottom. One thing I like to use to confirm direction is look for a 123 pattern in the same direction as the divergence. See chart.

always wait until the PA crosses the 5 ema line, cross the 5 ema and close or just cross?? I have been waiting for cross and close??? Works great.

Thank you Grand PooPaw

Hi Big E

In post#4088 you said “I don't pay much attention to news when trading the 4 hr or Daily charts. On the 5 & 15m charts it can kill you however.”

With the 1 hour GBPUSD pair do you observe not making a trade within about 30 minutes of news release on the GBP – usually about 09:30 UK time. I have observed that the UK news release affects the volatility of that pair more than the news on the USD - usually about 08:30 Eastern.
Just an observation but could be wrong.

In general [without it being written in stone] can we assume that news on the base currency affects the base currency more than the secondary currency?

Thanks for your fantastic help to traders especially those on your thread.

doaman,

I think your right about the news having a bigger effect on the Base Currency.

News can have a big effect on the 1hr chart also... The higher the time frame the less effect it has from my observations.

Good point...

Antny,

Crossing and letting the candle close is the most conserative way. Your using PA as your trigger with the TDI.

I personally prefer the more aggressive approach using the TDI... When green crosses red... all things looking good... I'll often enter the trade...

Numb3rs,

Good point and another confirmation you prefer to use... thanks.

wow I've been away for 6 weeks from this thread and the trading has got aggressive in here. I'll have to give this more aggressive style a go on the higher time frames.

So it seems the rules are even more simple now.


Has anyone prepared a definitive check list for this trading method

e.g.

Green crossed over red
No news to be announced in the next 30 mins
PA crossed over 5 EMA line
Not in consolidation
etc etc

Took this trade today, looked like a decent setup, will post back later...

Dan

Update: Had set trade at a TSL of 45 pips. Made +45 pips & looking at it now, PA is back to where I start yesterday.

Hi Big E:
Can I ask why you use a shift on the MA? I have found an indicator that will wake me up when PA crosses over the MA, but can't adjust the shift on it. I was wondering if you think it would be ok to use the MA without the shift, or is the shift criticial. Thanks again for all your help to everyone.

Jim

Jim. if you are not shift MA. the MA at current bar will like snake head, move up and down. when you shift. it is stay there , did not move at all. I guess that is reason Big E want to use shift on the MA.

bigim.... Try it on DEMO and see how it works for you...

I didn't post much yesterday because my computer was down all day... sorry.

Dan... Congrats on the 45 pip gain...

Training Chart - Look at the TDI for entry signals... green crosses red...

Take any chart and check where the green crosses red on the TDI for entries...

Big E,

What do you think about the two "head fakes" in your training chart you just posted. The first one I would say was after a long period of consolidation. But the second, anything that would have kept us out of that trade?

Thanks - 2scoops.

Same here really, do you think you might have traded the one circled. One bad trade out of 15 I would settle for any day.


Thanks.

For those who are new:

I went to www.compassfx.com and downloaded their free TDI Indicator and put it into my indicator file.

On the Chart: I copied the Synergy Template at www.compassfx.com

I then removed everything off the TDI but the green and red... and saved it.

The Synergy Template gives you the HA Candles on it. I then removed the two yellow lines above and below PA. I then added my own moving average set to: 5, ema, shift 3, exponential, typical price... and saved it.

I then brought up a chart and added the Template, added the TDI red & green indicator... and saved it.

Now I had a complete Template I could put on any chart. This works on all timeframes... any chart. I've taught you what to look for on the TDI for entries... study the charts already posted.

I don't trade charts under 1hr because lower than that there are too many false signals or head fakes. However, Dean Malone trades the 15 min charts and normally makes 50 pips or more per day. He usually starts trading at 8am EST for 2-3 hours.

I don't like to trade during the day because the PA is more jerky... I trade the 4hr charts. I check my 8 pairs (as posted) at 1am Eastern time and 5am eastern time. Those times are 10pm and 2am for me. I don't monitor the trades... I go to sleep. I get plenty of signals and the market is generally smoother... and I make more pips during those hours.

I expect each trade to move 3-8 candles. I like to enter on candles 1 or 2 only unless it's a bounce or re-entry trade.

When I'm in a trade and I see the TDI green line go flat, hook over or do a check reversal... before exiting I like to look at PA in relation to the 5 ema line. If PA still looks strong I'll consider staying in the trade but monitor it from that point on. . If I see PA reversing I'll usually exit.

Maybe one of you will post your Template for others to download into their Templates file.

It's pretty cut and dried and produces lots of pips.

2scoops,

Hey buddy... glad you stopped by again.

Both of the circles on your first chart posted only went 1 or 2 candles. You would have made money if you were monitoring the trade while it was in progress but if you didn't check back for 4 hours... you may very well have taken it in the shorts.

Of course we know we will never win all our trades... that's just part of this biz. We just want to simplify our plan as much as possible where the odds are still in our favor.

2 possible losses on a chart with 10-15 winners... I'll take those odds... Like you said.

Took a nice 4HR EG trade yesterday. Thanks E for showing us the light!



I placed the buy limit there as it was prior resistance turned support.



JD