MTF Stochastics

Quoting emda

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thank you Spudfyre for mentioning me for the 39 stochs... although it's me... Emda.. not Emra Also I have to say it was a pleasure to be in the room with you.

And I'm glad to see you liked the idea of the 39 stochs.... I'm happy to contribute to this wonderful method. More than using them for exits I use them for entries expecting big moves when they converge with the 14 and the 5.

I will see if I can post some charts explaining it a little more also.

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Quoting Spudfyre

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While in chat today, a trader (EMDA) suggested we look at the 39,3,3 stochastic in movement with the 14,3,3.

I played with a variety of basic rules and although my computer is slogging through reams of data, I thought I'd show you what I came up with so far in the preliminary study and how I would use it.

1H chart, only 2 stochastics 14,3,3 and 39,3,3 %K lines overlaid in one window.

Entry follows the 80/20 rule...however both stochs must cross 23.6 up (long) or must cross 76.4 down (short).
The exception is that where whipsaws occur around the 76.4 or 23.6 line we will enter a long if the stochastics cross down then back up the 76.4 level or vice versa at the 23.6 level....see the chart below.

These entries also become final exits. So this is really a short/long/short/long....type of trading.

I say "final" exits because this is where we must exit and enter a new trade. However, earlier exits are recommended when pips are maxing or when we have reached a target. In other words final exits are not necessarily the best exits. Most best exits will happen in the oversold or overbought range...watch for turns in stochastics and price.

Here's a chart of the system. Very simple and seems to work well.

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Quoting Porkpie

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Using a 20 period bollinger looks promising for filtering out the bad trades. Take a trade only when a stoch signal is combined with a bollinger band bounce. No trade the closer price is to the 20 period ma (center line).

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Quoting blueruby

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I like the way the stochs look right now, as well as price action, so I shorted the G/J.

MUCH TO MY SHOCK, I WAS DOWN 20 PIPS UPON ENTRY. CAN ANYONE TELL ME WHY THERE'S A FREAKING 20 PIP SPREAD?????

That's on OANDA. I see it's only 8 on Interbank.

Is there no end to "lessons learned the hard way"?

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Quoting blueruby

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I like the way the stochs look right now, as well as price action, so I shorted the G/J.

MUCH TO MY SHOCK, I WAS DOWN 20 PIPS UPON ENTRY. CAN ANYONE TELL ME WHY THERE'S A FREAKING 20 PIP SPREAD?????

That's on OANDA. I see it's only 8 on Interbank.

Is there no end to "lessons learned the hard way"?

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Quoting forexpiet

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Are there no postings anymore because of the chatroom very succesfull??
It would be a pity after reading this whole thread. I'ld like to know more about how this system is performing in real live trading. Is the test with starting amount $500,- still on or has it been stopped?

Thanks,

FP

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Quoting Spudfyre

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Below is a chart (hopefully the first of daily charts) explaining entries and exits using MTF stochastics. I'm going to simplify the process somewhat back to the basics so that we can become well practiced in reading stochastics.

I am concentrating only on GBPJPY but MTF Stochastics works on any pair.
All charts will review the day and have the 15M,30M1H and 4H stochastics (14,3,3) only. 5,3,3 can be added or used but I hope to show that we don't need a spaggetti of lines on our charts to see what is happening.

If this is of any help (or not) let me know.

Trades today are only short since the 4H stochastic is down and falling.
The first entry came when the 15M/30M/1H stochastic converged and crossed the 50 level down. The second short entry came when the 15/30/1H stochastics crossed the 23.6 level down.
Exit options from short were when the 15M came up and crossed the 76.4 line but rest of stochastics have remained low and offer no signal to exit short trade yet.

The 4H stochastic crossing the 23.6 level down re-inforces the short trade position for now until the 4H begins to turn up.

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Quoting Spudfyre

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Below is a chart (hopefully the first of daily charts) explaining entries and exits using MTF stochastics. I'm going to simplify the process somewhat back to the basics so that we can become well practiced in reading stochastics.

I am concentrating only on GBPJPY but MTF Stochastics works on any pair.
All charts will review the day and have the 15M,30M1H and 4H stochastics (14,3,3) only. 5,3,3 can be added or used but I hope to show that we don't need a spaggetti of lines on our charts to see what is happening.

If this is of any help (or not) let me know.

Trades today are only short since the 4H stochastic is down and falling.
The first entry came when the 15M/30M/1H stochastic converged and crossed the 50 level down. The second short entry came when the 15/30/1H stochastics crossed the 23.6 level down.
Exit options from short were when the 15M came up and crossed the 76.4 line but rest of stochastics have remained low and offer no signal to exit short trade yet.

The 4H stochastic crossing the 23.6 level down re-inforces the short trade position for now until the 4H begins to turn up.

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Quoting Rusty_forexman

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G'day spud!

Firstly, I just wanted to say, this is prob the best thread ive read (this and MTF Fib breakout thread) on FF.

Well done.

Also, I took 3 trades on GBPYEN last night (last night cause im in Australia) I netted 250 pips all up. Following your rules with "escalator to pips" and Fib Breakouts, as well as using Fib levels in determination for looking for reversals etc.

There were 2 fib breakouts all up, the first unsuccessful, but i picked up on the move from 240.59 - 242.10 (i didnt take all the pips, i ony took 50 in this move, cause i was signalled to enter a little later and exit later also) by looking at the escalator to pips method and using fibs.

The price broke 0, went to 161.8% reversed went up through 0 again and hit 23.6%, which acted as resistance. And the stochs began to turn.

I then waited for the 0 breakout, entered at 241.18 and rode it all the way down, took profit at 200 pips and went to bed, and just to let you know - slept like a baby.

Ive been trading full time for 5 years now - This is a great system i can add to my arsenal of great systems (im quite picky)

Ive never been a fan of stochastics till now, i guess ive never bothered really applying them the way they should be applied.

So yeh awesome stuff Spud - you have done a tremendous service to all traders by not only starting this thread, but continuing with it, in the same level of passion and commitment you had when you started it.

Its a lot of work, but my hat goes of to you!

Cheers Mate

Rusty

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Quoting senbanda

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Hello Spudfyre
After a suggestion from "Brainjt" Re.MTF stochastic indicator I came up
with this idea.
On a 15m time Frame I open MTF Stoch Indicator
before pressing the button ok I go to input and change
time frame to 15,K period to 14
Then I go to color and keep 0 at the same color and make 1 to none
Then I bring the indicator again on top of the previous indicator window
and change the time frame to 30 and do the same above changes
I do it again for 60M and 240 M
It shows the same like your chart.
Hope this will help until a new indicator is made by some programmer.
I do not know how to attach charts
Senbanda

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