D1 Elasticity Pullback Trading

GM, GU sell from wpivot, fib50.

Morning.

Hello everyone. From now on you will see me less active in the thread posting. This is because I have finally returned to the D1 charts completely. It fits perfectly with my current lifestyle where I don't want to spend time glued to the monitor. I started this journey as a D1 trader and im back to that approach with the same tools plus knowledge of all this years. I guess Im closing the circle. I will post H4/D1 naked charts with the stochs since lately I have realized that didnt use pivots but more fibos and pure price and stoch patterns. I will operate in some instrument other than gold although it is the market on which I always have the focus on. Good trading all!

Profit lock

Hi ghbdr,
At times we all come to the conclusion/s regarding time exposure to monitors, I wish you to harvest good profits while also enjoying doing other things.
In the past have been trading FX, commodities and indices, now trade only DOW, NASDAQ and very occasionally DAX. DOW is mine main preoccupation, trade both cash and quarterly futures in a tax efficient way for the UK based traders. Since early 90-ties the trading journey has been a good experience, though trading has never been the main or the only thing I have been doing, although at times I spent a lot of time studying and watching PA on monitors. I think that limiting monitor exposure time is a good thing, especially when trading longer TFs. Trading one or two instruments also allow to remember the charts and PA zones.

Came across your thread a few days ago and have studied few initial posts' and the PDF.
Over many years I have stayed with Stochastic indicator not as an automatic trigger, but as one thing I look to confluence with other things I utilise in my strategy.
I hope you don't mind if I share one thing found useful in relation to stochastic, and please forgive me if you find it out of place in relation to this subject mater of this thread.
I found that Sochs setting of 5,3,3 useful, and in order to have a context of this oscillating indicator with the PA of the displayed bars on the chart (usually above the indicator window) I use an additional MA set to the value of %K, in this case MA is set to 5. I find it useful as the oscillating properties and nature of stochastics (mathematically derived) is brought to the proximity of this MA5 on the chart. The concept of proximity of these two things although separately displayed proved useful, as the degree of isolation between the Sochs display and MA display is somehow limited, is it something like a possibility (which does not exist on charting software I am using) of MA with a grid of oscillation (according to a mathematical formula in this case Stochastic) of the given MA displayed within that MA, as directly correlated to its value as as principle of origin (5 bars in this case).
Have been using that set up for some time, and though 5,3,3 setting is a bit more sensitive (weaker) than 14.3.3 one might find it helpful to correlate these two things, both visually displayed.

I am aware that there are different ways and different elements in utilising Stochastics within a particular trading strategy, and that correlation of Stochastic with the corresponding MA might bring elements of confusion by adding complexity without necessarily increasing the utility.
I do not desire to confuse but point to the things I personally find useful.

Wishing everybody good profits!

Your thoughts are welcome. When I opened the thread I was using both 5 3 3 and 14 3 3 but latetly I changed to 14 3 3. Its less sensitive but anyway I focus on the pattern at certain price enviroment so for me 14 3 3 is ok now. 5 3 3 its useful but as I use MTF stochs the less sensitive stoch in a lower TF acts as a fast one

Hi 2be, thanks for the nice wishes. I think an image would help to demonstrate what you mean, not sure I understood exactly what you were describing. That maybe just me though, been a long day If one is using an MA on the main chart with a Stoch, with both set to the same reference window... then one can expect the price to have crossed the MA on the main chart when the Stoch oscillator goes from the above zone 70+ level and pushes a little ways past the 50 level... maybe closer to the 30 level.
Maybe I am silly, yet I have thought the periods used eg. 14,3,3 is somehow related to "time". Period 14 Stoch reference window on a H4 chart would be equal to 56 hours worth of price, roughly 2 days... or 14 days on the daily = roughly 2 weeks.. 14 hrs on 1H chart, rough 1/2 a day... otherwise, why use 14,x,x or 5,x,x ... unless it is just commonly used by others in similar enough ways which brings the consistency.

Hi tzamo,
I would like to reply in a meaningful and helpful way, with chart/s.
I have to go away for several hours, but I will put some thoughts later and will post it.
I do appreciate your post and would like to thank you to make me think how to best explain an illustrate it.
In my student's times long time ago, a great way to learn or sharpen ones understanding was to explain things to our colleagues, at times waiting our turns to be examined.
In the meantime keep well and harvest good profits!

Have been delayed for a while so...
Below is the chart with stochs set to 5,3,3 and 14,3,3 without the last bar with corresponding MA blue set to 5 and red set to 14 (both linear weighted )
It is DOW daily chart.
Manually drown channel with the middle line roughly corresponding to the Stochs windows displayed below.
Obviously this is far from exact or perfect display, bur I try to imagine and grow a mental awareness how that stochs window would have looked like on a chart where the PA is displayed by the printed bars if such a Stochastic sloping channel would have been possible to be displayed, may just as well it is not possible ATM as that would clattered the chart.

This type of visual display allows for other important parts of a given trading strategy to be taken into account like Fibs, pivots, slope of the MAs, PA and bar patterns, VSA , WRBs, pin bars and so on
I also look for Divergence, and a general flow patterns.
As it can be observed, the painted rectangle points to "disagreement" between the PA , MA and the stochastics, some could call hidden divergence, but that is another subject . I have been read that the hidden divergence provides very strong and profitable trading opportunity. As the name points, hidden demands much more awareness and commitment to initiate the trade and good trade management. It comes easier to find and define it after it has happen, though many are careless and do not spot anything like that. Studying these historic situations is helpful to consider that possibility in active trading in respect of the empty space to be filled by the forthcoming PA on the right empty side next to the last bar.


This is not a sufficient or best possible explanation, just an attempt to explain the things I mentioned in my previous post.
I shall be editing as I go so please be patient, have to leave, shall return to it later. Do apologies for such a stuttering attempt to explain that very simple concept.

morning. slowly turning up here

Hi tzamo,

Than you for contributing insights to thoughtful sharing with the solid aim to make larger profits and to keep them.

If one is using an MA on the main chart with a Stoch, with both set to the same reference window... then one can expect the price to have crossed the MA on the main chart when the Stoch oscillator goes from the above zone 70+ level and pushes a little ways past the 50 level... maybe closer to the 30 level.

I have reposted the chart from my previous post so you do not need to switch between them

Things to be aware when using any oscillator - in a trending market the amplitude does not "have to" , and usually does not go from one extreme level to another.
PA and the assistance of MAs points to the nature of the trending or ranging market ( these terms have to be defined with as comprehensive understanding as possible and in relation to different TFs), though usually there is a ranging boundary within a trend, and a trend within a ranging market. (are you confused? - well at first it is confusing) Trending/ranging always in relation to the TFs!!!!
In case of DOW, which I mostly trade, the NYSE sessions are extremely important to me, PA of the time preceding the NYSE open on continuous cash chart,as one comes to the conclusions of "other" influences between the NYSE sessions, and often there are great opportunities to take advantage of that by being aware of these lets say "different forces" in play. Just one mention - indices and GAPS , but this is another subject matter.
Stochastic interpret the PA and MA, but MA and above all PA principals are paramount in interpreting the Stochastics, as usual it also is important about the tendency we all possess - namely bias confirmation, deadly when the market does not agree with us. It pays good dividends, firstly to be aware of that and to bar these habits/tendencies, which make well over 90% of retail traders to loose, while all the time being filled with hope. Among other things, erroneous interpretation of anything, in this case of Stochastics can play a prominent role resulting in margin calls.

Overbought/oversold levels- prefer not to use these terms, and got accustomed to use 85/15 levels, as a kind of a very rough guidance, not using these levels also makes sense, but??? for better or worse I stuck them there

Another insight - Stochastics and trade initiation along the idea of stochastics and confirmation and trade management- just ponder on that - MTFs analysis, important? or less important -all depends on type of trading and trading strategy - scalping on shorter TFs, swing trading or something else,
trading to the mean - usually against the trend on a TF of the trade initiation, towards a specific PT is another possible thing to consider - all different traders, different emotional sates of traders, so many variables - the best is to be aware of these possibilities

For me the merit of the idea of using the MA linked to Stochastics is the trend/range interpretation, the slope of the MA, and the PA itself, try to use stochastic confirming the possible duration of the market rotation, and/or trend continuation, not automatically drawn conclusion solely based based on a given display of the value level of stochastic, or crossing of the %K with the %D, neither crossing of MAs.
Over all confluence of different components of trading strategy, and taking seriously statistics are by far a preferred option to the purely heuristically determined decisions, especially heuristic decisions which have not been conditioned by the hard work of checking, eliminating bad habits, thus allowing to introduce and grow good/profitable habits in case of trading.

Attached Image (click to enlarge)

Maybe I am silly, yet I have thought the periods used eg. 14,3,3 is somehow related to "time". Period 14 Stoch reference window on a H4 chart would be equal to 56 hours worth of price, roughly 2 days... or 14 days on the daily = roughly 2 weeks.. 14 hrs on 1H chart, rough 1/2 a day... otherwise, why use 14,x,x or 5,x,x ... unless it is just commonly used by others in similar enough ways which brings the consistency.

Period 14 is often used as a default setting in many oscillators, if I remember it correctly and it is time related as you have correctly observed.

the consistency

Consistency is important , apply to both winners and losers, with losers consistence is limited by the lifespan of their account/s.

To have an edge is commonly understood as being consistently profitable, and being able to keep these profits
There is also a cliff edge - we all frequent that reality, however the consistent losers so often have chosen to go for the excitement of a free fall, which can be compared to a skydiver without a parachute, filled with exuberant hope they are determined to continue in perpetuating wilful blindness with highly predictable result/s.

Chart below is the DOW H4 chart with that same elements as the chart above
Another Divergence is displayed there, if one uses overlay of NYSE sessions, one is able to determine as to the timing of that divergence in relation to the active NYSE sessions

Attached Image (click to enlarge)

Saying all the above, simple concepts, many words and possible boredom and confusion. Hope the latter is not the case.

Wishing all to be consistent in harvesting and keeping good profits.
Peace and prosperity to all!

GU, I'm aiming higher, let's see what happens.

more upside for now

wick central

GU, I'm aiming up again.

happy Friday Mr G's...

Yeah pretty bad price action all around, not only in Gold, its Friday though

I disagree. Nice oportunities in different markets if you are patient