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MTF Stochastics

  • #841
  • Jun 13, 2007 8:16pm Jun 13, 2007 8:16pm
Quoting jnevins
here's the example... lets have a look.

Attachment
Quoting jnevins
Sepak,

I have tried to get my chart to look like Spud's in MT4 using the #MTF Stochastic indicator that I have... Time Frames higher than the one on the chart look quite jaggy and stepped and not smooth... perhaps you are using a different indicator than the one I am....My version is attached as a jpeg image... Can you help?

-Jerry
please try this one...
Attached File(s)
File Type: mq4 #MTF Stochastic.mq4   3 KB | 1,066 downloads
  • #842
  • Jun 13, 2007 9:30pm Jun 13, 2007 9:30pm
Quoting sepak.orang
please try this one... Attachment
That was the trick... thanks Sepak!

Jerry
  • #843
  • Edited 10:59pm Jun 13, 2007 10:06pm | Edited 10:59pm
does anyone have a problem with the above indicator freezing your platform? whenever i try to overlay the different time frames on 1 window then mt4 hangs


Sorry got it working after reinstall mt4
  • #844
  • Jun 14, 2007 1:20am Jun 14, 2007 1:20am
Just wanted to know if i made the correct call to go long on the Aus/Usd for a climb away trade 4hr stotch above 23.6 and 15/30/60 converged and closed above 23.6
Attached Image
  • #845
  • Jun 14, 2007 2:31am Jun 14, 2007 2:31am
hi spud,

thanks again for the 'The Basic 4 Trades' explanation and chart examples.

all of the 4h stochs on all of the examples are mostly in overbought or oversold area.

but i have a question here, what if this 4h stoch is in between these areas? let say the 4h stoch is on the level 50 with no clear direction (it can be flat). but at the same time we can see all of the other 3 stochs are moving through 23.6 but not so 'converging' with each other.

so how can we decide if it's a good time to ride the move?

im sorry if this question confusing u.
  • #846
  • Jun 14, 2007 7:44am Jun 14, 2007 7:44am
Quoting pip_hunter
Spud,

In your studies, how many days or hours will the 14,3,3 lead price?
I have seen that mentioned that it will do that on occasion and was wondering if you have done a study or noted it.


Thanks,
PH
I think the chart below answers your question. I simply moved the stochastics up to the price chart for clarity but you can see in the unshaded area that the 15/30/1H (especially 15/30) are clearly leading the price move.
Attached Image
  • #847
  • Jun 14, 2007 7:50am Jun 14, 2007 7:50am
Quoting sepak.orang
hi spud,

thanks again for the 'The Basic 4 Trades' explanation and chart examples.

all of the 4h stochs on all of the examples are mostly in overbought or oversold area.

but i have a question here, what if this 4h stoch is in between these areas? let say the 4h stoch is on the level 50 with no clear direction (it can be flat). but at the same time we can see all of the other 3 stochs are moving through 23.6 but not so 'converging' with each other.

so how can we decide if it's a good time to ride the move?

im sorry if this question confusing u.
Basically the same rules apply but conscious of the fact that if the 4H stochastic is rising from say 20 to 80, than we are probably trading within a long trend and vice versa if the 4H stochastic falls.

Keep in mind that even in say a long trend, there are good short trades to be had within. However, with the 4H stochastics in the overbought/oversold area the trades are usually easier to capture succesfully.


I'll have more to come....still working. Graphics take a long time.
  • #848
  • Jun 14, 2007 8:03am Jun 14, 2007 8:03am
Quoting supaq
Just wanted to know if i made the correct call to go long on the Aus/Usd for a climb away trade 4hr stotch above 23.6 and 15/30/60 converged and closed above 23.6
This isn't a true climb away trade....remember we want the 4H stochastic to be in the overbought/oversold zone...preferably. In this example you must be careful of the 4H stochastic falling. Have to be watchful of the fact that the 4H might drop into the oversold position. Having said that, if the 15/30/1H cycle to the top (76.4) then we'd have a "Diving To" scenerio which works better with the falling 4H....since then everything is dropping.
  • #849
  • Jun 14, 2007 8:05am Jun 14, 2007 8:05am
Quoting Spudfyre
Basically the same rules apply but conscious of the fact that if the 4H stochastic is rising from say 20 to 80, than we are probably trading within a long trend and vice versa if the 4H stochastic falls.

Keep in mind that even in say a long trend, there are good short trades to be had within. However, with the 4H stochastics in the overbought/oversold area the trades are usually easier to capture succesfully.


I'll have more to come....still working. Graphics take a long time.
that's great! thanks spud!
  • #850
  • Jun 14, 2007 8:20am Jun 14, 2007 8:20am
Quoting Spudfyre
I think the chart below answers your question. I simply moved the stochastics up to the price chart for clarity but you can see in the unshaded area that the 15/30/1H (especially 15/30) are clearly leading the price move.
It does, thank you.
  • #851
  • Jun 14, 2007 10:41am Jun 14, 2007 10:41am
Quoting Spudfyre
Can you upload that indicator here. I have one from Iya but perhaps it is the wrong one or earlier version?
Here it is. This indicator was in an upload called Indicators.zip which was posted either on this thread or on the fibo thread (don't remember where) by iya.
Attached File(s)
File Type: mq4 #MTF Stochastic_iya.mq4   3 KB | 994 downloads
Old Benjamin was right
  • #852
  • Jun 14, 2007 10:45am Jun 14, 2007 10:45am
Spud,


Don't you think that Climbing to Trade & Diving to Trade have a better chance for success because you are trading with an established trend (4hr.)?


Thanks
Unus pro omnibus, omnes pro uno
  • #853
  • Jun 14, 2007 11:55am Jun 14, 2007 11:55am
Quoting moneda
Spud,


Don't you think that Climbing to Trade & Diving to Trade have a better chance for success because you are trading with an established trend (4hr.)?


Thanks
Exactomoondo! However, remember that the 4H is going to lag any trend change...and eventually the trend will change...so this is what that looks like in a climb away scenerio where the 4H is climbing...we just can't see it as quickly as we would like.
Attached Image
  • #854
  • Jun 14, 2007 1:46pm Jun 14, 2007 1:46pm
Spud,

Thanks for the explanation(+)!
Unus pro omnibus, omnes pro uno
  • #855
  • Jun 14, 2007 2:36pm Jun 14, 2007 2:36pm
Just so I haven't lost anyone here...the "away" trades and "to" trades work on the exact same principle of "momentum" trades and "escalator to pip" trades as explained in the very beginning.

One thing I should point out for statistical sake is that all the BIG, long moves will come from the "away" trades with the 4H stochastic rising or falling across the 23.6 or 76.4 lines.

In other words a "Dive Away" trade will have the 4H stochastic starting from an overbought position and falling past the 76.4 level and keep going.
A "Climb Away" trade will start with the 4H stochastic in the oversold position and the 4H will rise up and cross the 23.6 and keep climbing.

There are big moves too wth the "To" trades where the 4H stochastic does not move but they don't tend to last as long. These will be big 70% as many times as the "From" Trades.

About 90% of all the big moves will be generated starting from these 4 trade types.
  • #856
  • Jun 14, 2007 7:15pm Jun 14, 2007 7:15pm
Hello,


I don't remember reading about a MTF Stochastics alert indicator. Is there one lurking in this thread?

Thanks
Unus pro omnibus, omnes pro uno
  • #857
  • Jun 14, 2007 8:50pm Jun 14, 2007 8:50pm
Does anyone know how to create the MTF Stochs overlay in TradeStation.
I know most folks seem to use MT, but I thought there might be some TS
users lurking around here.

Thanks
Dream Dog
  • #858
  • Jun 15, 2007 11:22pm Jun 15, 2007 11:22pm
Spud
I am with GFT and I am trying to put all the lines on one chart if I use 3-3-3 for 15min, 7-3-3 for 30min 14-3-3 for 1 hr and 28-10-3 for 4hr all on a 1hr chart is this going to match your setting? It looks close but I'm not for sure it will trade accurately.
Thanks
COG
  • #859
  • Jun 16, 2007 6:37am Jun 16, 2007 6:37am
Quoting COG
Spud
I am with GFT and I am trying to put all the lines on one chart if I use 3-3-3 for 15min, 7-3-3 for 30min 14-3-3 for 1 hr and 28-10-3 for 4hr all on a 1hr chart is this going to match your setting? It looks close but I'm not for sure it will trade accurately.
Thanks
COG
GFT doesn't offer the same setting for their Stoch. They don't have the high/low option.
You can still obtain favorable results with the method, but why are you using so many settings for your stochs?

PH -
  • #860
  • Jun 16, 2007 8:59am Jun 16, 2007 8:59am
Quoting COG
Spud
I am with GFT and I am trying to put all the lines on one chart if I use 3-3-3 for 15min, 7-3-3 for 30min 14-3-3 for 1 hr and 28-10-3 for 4hr all on a 1hr chart is this going to match your setting? It looks close but I'm not for sure it will trade accurately.
Thanks
COG
The problem with doing this is in the math. The %K formula for stochastic (close) is:

%K = 100[(Close - Lkclose)/(Hk - Lk)] where:
C = the most recent close
Lk = the lowest low for the last k trading periods (%k setting)
Hk = highest high for the same k trading periods (%k setting)



So, 14,3,3 on the hour chart is:
%K = 100[(Close 1H - L14)/(H14-L14)]



So, 3,3,3 on the hour chart is:
%K = 100[(Close 1H - L3)/(H3-L3)]



In english, the 14,3,3 on the 15 min chart is taking the 15M close price, the range over the last 210 minutes (15M x 14), and the lowest low in the last 210 minutes.
The 3,3,3 ont the 1H chart is taking the 1H close price over the last 180 minutes (1H x 3), and the lowest low in the last 180 minutes



As you can see that leads to a pretty large discrepency. It get's much worse because we are using the difference between the low and the high instead of the close....which is typically much larger on a 1H chart than a 15M chart.



Having said that, I have experimented with using different stochastics to represent different time periods and it doesn't work nearly as well as the real thing.



I'll keep coming back and saying it....there is no short cut to accurate trading!!!! It is a pain to flip between time frames but that is how we get accurate data. We can use a tool like MTF stochastics in MT4 if we know how to read it, the effects of using it and realizing the effect of the time frame it is on .
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