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Stochastic secrets

  • #461
  • May 14, 2017 8:25am May 14, 2017 8:25am
Quoting whateveridon
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RCI: Rank Correlation Index. This is similar to Spearman's rank correlation indicator. RCI is popular among Japanese traders.
A well-known Japanese lady trader named Mayumi wrote a book which became a best seller. She used bollinger bands, RCI, RSI and MACD at 5 Min chart. She insists she makes 70% profit each month.
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Simplicity is the ultimate sophistication - Leonardo da Vinci
  • #462
  • Sep 9, 2017 6:34pm Sep 9, 2017 6:34pm
I am not longer using the RCI indicator. I am not longer using the RCI indicator because I am not a trader. The indicators are not so-important as each other differences.

-MGL
  • #463
  • Oct 21, 2018 1:30am Oct 21, 2018 1:30am
Quoting eelfranz
Aiya..... If you check back to page 8 and above I explain how I use my Stoch settings. One day while playing with the STOCH SETTINGS i came accross 25,2,3 and put it on top of another Stock of 5,3,3 on the EUR/USD which is one of two currencies I trade. I clicked on properties and unchecked the auto scroll. I went way back and wanted to see if there was any way to use this combination together to find upcoming trades. I liked the 25,2,3 because it was a slow smoothed line as compared to the 5,3,3. To my amazement I began to notice that when 25,2,3...
AMAZING POST CAN YOU OR ANY ONE IN THE THREAD MENTION EXACT ENTRY EXIT RULES PLEASE
  • #464
  • Oct 21, 2018 2:30am Oct 21, 2018 2:30am
Quoting whateveridon
I am not longer using the RCI indicator. I am not longer using the RCI indicator because I am not a trader. The indicators are not so-important as each other differences. -MGL
What is the abbreviation of RCI? probably you meant RSI relative strength index right?
  • #465
  • Dec 26, 2018 9:06am Dec 26, 2018 9:06am
Quoting dispersion
{quote} What is the abbreviation of RCI? probably you meant RSI relative strength index right?
It is RCI. Probably, RCI is Relative correlation Index. I don t remember the exact name.
  • #466
  • Dec 26, 2018 9:53am Dec 26, 2018 9:53am
Where can I get the RCI indicator and the way to trade it?
  • #467
  • Sep 4, 2019 2:33pm Sep 4, 2019 2:33pm
Price action, S/R is my first consideration. BB the second, stoc only for trigger. Dont forget to see larger tf.

I found its good in XAUUSD and GU.
Of course analyse to minimize the risk, not to predict.
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wish me pips
  • #468
  • Dec 25, 2021 7:14pm Dec 25, 2021 7:14pm
Stochastic as the name implies in fact is a very accurate indicator I have ever known besides Awesome MACD(MACD with AO settings). The secret is to find the right setting, if you set it right it works wonder. I use it as the core engine in my Expert Adviser, and I have no complaint. Trading is good.
  • #469
  • Dec 30, 2021 2:18am Dec 30, 2021 2:18am
Well, quite interesting information about stochastic oscillators. In my opinion, nowadays stochastic isn't so popular among traders or at least those traders who I contacted don't use stochstic at all. As far as I concerned, the vast majority today use ema/sma and rsi. Moreover, I also use the same combination and it really helps me a lot. However, recently I got used to trade on volumes and orders.
Anyway, traders always create their own strategies and as a rule they're individual. Of course, there are some traders who prefer trading based on someone's strategy, nevertheless I can't consider such way as a safe one.
  • #470
  • Jun 20, 2023 7:44pm Jun 20, 2023 7:44pm
Quoting eelfranz
From: Your Trading Coach Three Losses in a Row Three losses in a row are tough. That’s about the most consecutive losses that novice traders are psychologically prepared to accept before they feel compelled to take action and ‘correct’ the situation. If you’re anything but a total newbie, I’m sure you’ll recognize the symptoms: • Frustration – Why me? I’ve worked so hard. Everyone else in the forum appears to be getting good results with this strategy? Nothing...

--- bump ---


take note TMS 5-Method traders ,
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #471
  • Aug 24, 2024 11:54am Aug 24, 2024 11:54am
Quoting 2george
i believe there really is a secret to stochastics - being a momentum indicator/oscillator it has the benefit of divergence and, more importantly, convergence. It is recognition of the areas of divergence and convergence that is necessary to reap the benefits of the indicator. I'm not a coder so can't help but what I will do is to post this illustration with my secret rules - in the hope that some very good coder can make a signal based on a confirmed convergence point. Happy to answer coders PM's. Thanks. George Ps - this is the stochastics indicator...
This was written in 2017, and it is 2024 August today.
One difference between lie and truth is that lies change dimensions but the truth remains the same irrespective of time and no of years.
I go with George II
I support his views.
While I learnt alot from market structures ,the role of indicators can't be completely rubbished .Over my 14 yrs as a trader I found out that even the widely acclaimed Market Structure sometimes istruggles against heavy market Fluctuations.
That is the truth many praise singers of Market Structures will never come out to disclose.
I respect them along side the knowledge that they brought to the market analysis though, but those our late inventors of these Indicators too are worthy not to be forgotten.
Now, on the issue George II posted look at my image below
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  • #472
  • Oct 20, 2024 1:50am Oct 20, 2024 1:50am
greetings!
in every situation, whether skills, or knowledge, or other ideas, with codes or without codes, in reality i would say there is a secret. but this thread for stochastics is not a secret anymore. coz its already given by one of our beloved trader here in FF.

im a fun of stochastics. and make a refinement or modified version of stochastics with divergence signals by putting objects, a vertical lines for the divergences (bullish or bearish)
after price taken out the old weekly highs in daily , for this instance.
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we have bearish divergence, as we all know that price will continue move higher while the oscillator move lower.
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the same with H4 time frame
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notice the stochastic in H4 above 30 level or at mid 50 is about to close and crossed under stoch main line. also observe the vertical blue line indicates a bullish divergence where price will continue to move lower and the oscillator move higher.
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on his pdf we have this stochastic formation equivalent situation of the stochastic formation
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all signals from stochastic divergences are true. we can anticipate price action movement through stochastic tool with its secret formations or direcdtions of price action.
  • #473
  • Dec 20, 2024 5:27am Dec 20, 2024 5:27am
Let me demystify this for you - there are no secrets, you just don't know how to use Indicators correctly, but its very easily learned [see below]

On page 1 of this thread back in 2008 someone said use OVERSOLD readings in an UPTREND and OVERBOUGHT readings in a DOWNTREND - that is pretty much it!

The Stochastic will also pick up end of trend turns, but its hard to know when that is, but you can by adding in other things to filter

Anyway, I would get a copy of Robert Miners "High Probability Trading strategies" book read the momentum chapter and also find as much info from Walter Bressert as you can

Once you've read those books you'll notice that you can use the stochastic to time cycles turns (which is what is happening with the stochastic indicator and most other indicators)

Now the next few charts show you a couple of things

1) Is a series of using HIGHER TIME-FRAMES to Identify a possible change in trend (which obviously works for this example) - when the HIGHER TF changes to say UP, ALL the lower TF's will form UP trending characteristics including stoch reversals either mid range or in the OS zone [oversold] etc - It is GUARANTEED

This WEEKLY TF is NOT trending, but the STOCH indicated a possible UP reversal - shown at 2 points on the chart (also study the stoc reversals prior to that!)

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So, we don't trade these HTF reversals, as they may not be correct, but guess what? If they are correct, what are the lower TF's going to do?

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Now the DAILY TF was not perfect, so it would make sense watching a lower TF, in this case the hourly TF, again this was not a perfect example - REAL WORLD folks! - but you could have easily hashed some sort of trading out of that

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So that's one way, using multiple time-frames based trades - Remember the WEEKLY created the possibility, which was fulfilled by the lower TF's


Here's something a little more perfect - long only = go long on Stoch pullback to OS zone in a confirmed UPTREND (you can figure out the shorts)

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The STOCHASTIC tracks market CYCLES of price, some are pathetic, others are good and some are great - WD Gann said "When TIME is up, the trend reverses" - When you get multiple stochs on different TF's all lining up, this also happens

Work out what PICTURE PERFECT looks like - then just WAIT for it to show up a few times per week and trade it, all you need to double an account is 2.3% per week, based on a 44 week trading year - I know for a fact that picture perfect opportunities come multiple times per week on the lower TF's

Let me show you one more example

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  • #474
  • Dec 20, 2024 7:42am Dec 20, 2024 7:42am
and to cap off the week, just taken this trade for a 2R profit in and out

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  • #475
  • Dec 21, 2024 4:28am Dec 21, 2024 4:28am
Quoting Thtpro
and to cap off the week, just taken this trade for a 2R profit in and out {image}
is there any way to contact you directly?
  • #476
  • Dec 22, 2024 5:46pm Dec 22, 2024 5:46pm
if you are at least capable or maybe not i think is a good idea to stick with the stochastic indicator until you learn how to use it...... long term

combining many stochastic to made a strategy and a system alike
  • #477
  • Dec 23, 2024 5:31am Dec 23, 2024 5:31am
Quoting Thtpro
Let me demystify this for you - there are no secrets, you just don't know how to use Indicators correctly, but its very easily learned [see below] On page 1 of this thread back in 2008 someone said use OVERSOLD readings in an UPTREND and OVERBOUGHT readings in a DOWNTREND - that is pretty much it! The Stochastic will also pick up end of trend turns, but its hard to know when that is, but you can by adding in other things to filter Anyway, I would get a copy of Robert Miners "High Probability Trading strategies" book read the momentum chapter and...

How long did it take to you to learn and master this strategy? Looks quite complicated, probably years are needed to learn it properly.
  • #478
  • Dec 23, 2024 8:32am Dec 23, 2024 8:32am
Quoting anon007
{quote} is there any way to contact you directly?
No only on here - if you tag me into something, it will show up on my quoted list to respond to

I don't do PM's or divulge email
  • #479
  • Dec 23, 2024 8:45am Dec 23, 2024 8:45am
Quoting pizd0s
{quote} How long did it take to you to learn and master this strategy? Looks quite complicated, probably years are needed to learn it properly.
I've looked at lots and lots of methods over the years, through just sheer luck I came across Robert Miners methods and Walter Bresserts (very very similar using the stoch - NOT Elliott Wave)

Doesn't take long, you just have to have the confidence to buy into a decline

The best turns happen when the WEEKLY chart is turning, these will naturally feed down to the lower time-frames, because the lower TF's HAVE to move first, to create the bigger TF's to move - this is why I showed the sequence time-frame charts, the other charts were stand-alone based on a combination of price moving in formation for it to suggest a trend, in this case a series of higher highs and lows, the basic moving averages will also form in order to confirm and then the Indicator will move to or very near the oversold or buy zone which signals that a "POSSIBLE" (not guaranteed) reversal in price might occur and as you've got a very tight stop, when it works (win rate=65%+) it means you usually get a few R out of it

The Stoch or any Indicator when set properly will just track price cycles - yes they LAG price, but you can usually get in within 1-2 bars of a swing low - This also means that if you use Fib levels, you'll catch turns on there too

You can basically learn this within hours, master any method takes years, but you can learn it fast - the trick is to look and watch what constitutes picture perfect set up and then just watch and wait for it to turn up

If you are making say 2R per successful trade, then you only need a few per week to make a decent income from - most people will misuse it though, they'll take EVERY possible trade they see and overtrade, which is not the methods fault, its the traders
  • #480
  • Dec 23, 2024 9:32am Dec 23, 2024 9:32am
So the below I have NOT traded

What I have done is simply log onto my trading software to pick out examples for you, that have happened TODAY

OK - READ and study this carefully, as I talk about multiple methods

1) Lets say you trade ALL the stoch reversals in the oversold zone - I've shown 4 trades (there's actually 5 trades, see next point below), price was at the MA's with the stoch in the OS/buy zone = buy break of the HIGH of the price bar, stop below the LOW of the price bar - The first trade of the day was a LOSS = -1R or if you risk 1% per trade = 1% etc, then the next 3 each produced 2R/%+ so lets say you set a target of 2R/% and just got out - 3 wins = 6R/% with 1 loss at 1R/% = NETT 5R/% for the DAY - most traders struggle to make 5% a month let alone in a day/week

2) In the chart 1 trade is NOT shown or accounted for, its just after the 1st trade of the day and a LOSS, the stoch rallies then pulls back into the OS/Buy zone with price moving big - this probably hit a retracement level and rallied, the STOCH produced a DIVERGENCE pattern too and it produced a profit of a lot of R/% thereafter - If you're into trading retracement levels you can use the stoch to TIME the turn

3) If you're 1st trade is a loss, you HAVE to take the next trade - do not get spooked with a loss

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So we have in 1 trading day 1 market on a 5 min chart producing some stonking % profit returns

I only trade 8am to 4.30pm - some of these trades can appear after those hours, so although these set-ups appear DAILY, you might not catch them all due to working hours, but you should be able to catch them every other day and remember this is just a 5 min chart, the exact same set-ups show up on EVERY god damn time-frame - Monthly, Weekly, Daily, Hourly, 30 min, 15 min giving you loads of opportunities throughout the year

Remember trading is a game of PROBABILITIES - you cannot dodge this rule with trading, you need to have a positive expectancy for your method - this means working out win rate and average NET profit
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