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Trading Made Simple(r)

  • #9,961
  • Mar 10, 2025 3:02pm Mar 10, 2025 3:02pm
Quoting RobinHood
{quote} It's very easy to do on TradingView. You just add 2 Stochastics to the chart. Then right click on the lowest Stochastic and choose "Move to" then "Existing Pane Above". Then change all of the settings. One Stochastic should be 12-3-3 and the other 55-12-3 - %D line only. Then make it mimic the image below. (There is nothing special about these settings, they just happen to be some of the ones that I like to use). {image}
I have tried to replicate the Stoch but for some reason your orange Stoch oscillates more compared to mine, using the same settings.

Not sure if I am missing something in updating on the indicators.

This is what I see on Palantir on 3min as of 10th Mar 15:58 NY time.
Attached Image (click to enlarge)
Click to Enlarge Name: screenshot.png Size: 62 KB
Find a strategy that works consistently and then trading becomes easy.
  • #9,962
  • Mar 10, 2025 3:52pm Mar 10, 2025 3:52pm
Quoting Roscearm
{quote} I have tried to replicate the Stoch but for some reason your orange Stoch oscillates more compared to mine, using the same settings. Not sure if I am missing something in updating on the indicators. This is what I see on Palantir on 3min as of 10th Mar 15:58 NY time. {image}
There could be numerous reasons for this.

1. Are you using the %D lines only?

2. Are you using Simple or Exponential as your settings? I use Exponential.

3. Realize, I have to give concrete numbers for people to use, but I don't always use the exact same settings as different things move in different ways, so I will often adjust them to better fit that which I am trading. On this PLTR chart I am using 8-3-3 and 60-10-3.

4. Different trading platforms sometimes show (calculate) indicators in different ways. Or the price data could be different.

5. Different trading platforms have different type of Stochastics, such as fast or slow.

I use TC2000 for charting stocks and I use Interactive Brokers as my broker and the RSO's do not perfectly match each other on the charts, but I don't worry about as I make my trades based solely on TC2000 charts.
Always a Student, Never a Master - Emulate What Works
  • #9,963
  • Edited 4:16pm Mar 10, 2025 4:02pm | Edited 4:16pm
This is just one reason why you should have the RSO on your charts, but there are also many other reasons too. Once you learn all of the many things this indicator can tell you, you will be amazed by it. It took me years to create and refine the RSO, but it was really worth it.
Attached Image (click to enlarge)
Click to Enlarge Name: Classic Divergence.png Size: 97 KB

Putting the pieces of the puzzle together...
Attached Image (click to enlarge)
Click to Enlarge Name: RSO Divergence 1.png Size: 100 KB
Always a Student, Never a Master - Emulate What Works
  • #9,964
  • Mar 10, 2025 4:03pm Mar 10, 2025 4:03pm
Quoting RobinHood
{quote} There could be numerous reasons for this. 1. Are you using the %D lines only? 2. Are you using Simple or Exponential as your settings? I use Exponential. 3. Realize, I have to give concrete numbers for people to use, but I don't always use the exact same settings as different things move in different ways, so I will often adjust them to better fit that which I am trading. On this PLTR chart I am using 8-3-3 and 60-10-3. 4. Different trading platforms sometimes show (calculate) indicators in different ways. Or the price data could be different....
Thank you RH.

I understand that it wont be exact 1 to 1 but I wanted the template to be as close to what you'd recommend.

MT4 provides the option to align to different MA Method. However, the default Stoch indicator on TV doesn't provide this option. So I have used just the 12, 3, 3 and 55, 12, 3 for now.

Thanks again for your assistance and guidance.
Find a strategy that works consistently and then trading becomes easy.
  • #9,965
  • Edited 5:05pm Mar 10, 2025 4:25pm | Edited 5:05pm
I'll share another short story that I wrote from my book...

We Only Have to Cut Off Your Arm

One day a man named Bob goes to visit his doctor because he isn’t feeling very well. The doctor gives the Bob a thorough physical examination and requests that he immediately go have blood work done and to return to the doctor’s office the next day for the results.

Upon Bob’s return to the doctor’s office the next day, the doctor tells him that he has some bad news for him. The doctor says, “You have bone cancer in your left arm, and you will have to have it amputated just below the shoulder otherwise it will spread, and you will eventually die from it.

Bob is obviously very jolted by the bad news but agrees to schedule an appointment with a surgeon to have his arm amputated.

The next day, the doctor calls Bob and says, “I’m afraid that I have even worse news, more test results just came back, and the cancer has spread to your torso, so the worst is inevitable. I would strongly suggest that you get your affairs in order immediately”.

Upon Bob being told that the end is near rattles him to his core and so he starts the process of winding down his life and his affairs.

Another day goes by, and the doctor calls Bob back again. The doctor says: “Bob, I have great news for you, the final test was wrong, the cancer has not spread to your torso so all we have to do is amputate your arm and you are going to live”.

Bob can’t contain his excitement because now he is not going to die, he just needs to have his arm amputated.

The Moral of the Story:

“Perspective Determine Opinion”
Always a Student, Never a Master - Emulate What Works
  • #9,966
  • Mar 10, 2025 4:42pm Mar 10, 2025 4:42pm
Here's are the 2 MOST important rules regarding the RSO...

1. You NEVER go Short the market when the blue line is at, near, or above the green line.

2. You NEVER go LONG the market when the blue line is at, near, or below the red line.
Attached Image (click to enlarge)
Click to Enlarge Name: RSO Long.png Size: 93 KB

Attached Image (click to enlarge)
Click to Enlarge Name: RSO Short.png Size: 97 KB
Always a Student, Never a Master - Emulate What Works
  • #9,967
  • Edited 6:36pm Mar 10, 2025 6:25pm | Edited 6:36pm
Once you know, you know. Once you see it, you can't not see it.
Attached Image (click to enlarge)
Click to Enlarge Name: RSO Divergence.png Size: 80 KB
Always a Student, Never a Master - Emulate What Works
  • #9,968
  • Mar 10, 2025 9:55pm Mar 10, 2025 9:55pm
Hi RH,

Thanks for your stories, they are golden nuggets or rather chicken soup to the heart.....

I have a qustion to ask on the lower indicator, in the past you have RSI but no longer see it.

Have your removed RSI for the 2 Oscillator now? Is it no longer needed?
  • #9,969
  • Mar 10, 2025 9:58pm Mar 10, 2025 9:58pm
Quoting Roscearm
{quote} I have tried to replicate the Stoch but for some reason your orange Stoch oscillates more compared to mine, using the same settings. Not sure if I am missing something in updating on the indicators. This is what I see on Palantir on 3min as of 10th Mar 15:58 NY time. {image}
Hi Roscearm
Really appreciate all the effort and time you have been putting into this great forum created my Robinhood

Maybe ensure that you are using the same data as Robinhood, i.e you will see a difference between Regular trading hours and extended trading hours (ETH)
Just a thought from reading your post

Cheers
  • #9,970
  • Mar 10, 2025 11:44pm Mar 10, 2025 11:44pm
Quoting SF422
{quote} Hi Roscearm Really appreciate all the effort and time you have been putting into this great forum created my Robinhood Maybe ensure that you are using the same data as Robinhood, i.e you will see a difference between Regular trading hours and extended trading hours (ETH) Just a thought from reading your post Cheers
Thanks mate. No worries at all.

Thanks for pointing out the RTH and ETH. I was just trying to get the template right (correct parameters) so others (and I) could use it.

Happy trading!!
Find a strategy that works consistently and then trading becomes easy.
  • #9,971
  • Mar 11, 2025 4:16am Mar 11, 2025 4:16am
Quoting Roscearm
{quote} Now, this one ended up hitting TP without hitting SL. I can now count this for the scorecard. I also had another TP of 2R on Gold. That's 2 more wins. 3rd one is in progress. Scorecard: Wins: 51 Loss: 16 {image}
The 3rd short trade on GOLD did not work out.

Loss -1R

Scorecard:
Wins: 51
Loss: 17

P.s: Others can still make this work if they aim for just 1:1R
Attached Image (click to enlarge)
Click to Enlarge Name: screenshot.png Size: 69 KB
Find a strategy that works consistently and then trading becomes easy.
  • #9,972
  • Edited 8:15am Mar 11, 2025 8:02am | Edited 8:15am
Quoting Cannonfairy
Hi RH, Thanks for your stories, they are golden nuggets or rather chicken soup to the heart..... I have a qustion to ask on the lower indicator, in the past you have RSI but no longer see it. Have your removed RSI for the 2 Oscillator now? Is it no longer needed?
I still use RSI a lot on some templates. When I get a chance I will show when and how I use it now the most often.
Always a Student, Never a Master - Emulate What Works
  • #9,973
  • Mar 11, 2025 8:18am Mar 11, 2025 8:18am
Quoting RobinHood
Once you know, you know. Once you see it, you can't not see it. {image}
Tks RH for all this valuable teachings.!
  • #9,974
  • Mar 11, 2025 8:55am Mar 11, 2025 8:55am
Quoting Roscearm
{quote} Thanks mate. No worries at all. Thanks for pointing out the RTH and ETH. I was just trying to get the template right (correct parameters) so others (and I) could use it. Happy trading!!
Hi, just as general info, there is an indicator on TV, where you can use 2 stochs in one pane. For people interested, search for :
CM Stochastic Multi-TimeFrame,
  • #9,975
  • Edited 10:20am Mar 11, 2025 9:51am | Edited 10:20am
RobinHood thank you for sharing your vast knowledge and experience; much appreciated.

Simple Tradingview code for Double Stoch below: Cut and paste into pine editor window and compile:

//@version=6
indicator(title="Double Stochastic", shorttitle="Stoch", format=format.price, precision=2, timeframe="", timeframe_gaps=true)
periodK1 = input.int(55, title="%K Length", minval=1)
smoothK1 = input.int(12, title="%K Smoothing", minval=1)
periodD1 = input.int(3, title="%D Smoothing", minval=1)

periodK2 = input.int(12, title="%K Length", minval=1)
smoothK2 = input.int(3, title="%K Smoothing", minval=1)
periodD2 = input.int(3, title="%D Smoothing", minval=1)

k1 = ta.sma(ta.stoch(close, high, low, periodK1), smoothK1)
d1 = ta.sma(k1, periodD1)
//plot(k1, title="%K1", color=#2962FF)
plot(d1, title="%D1", color=#FF6D00)

k2 = ta.sma(ta.stoch(close, high, low, periodK2), smoothK2)
d2 = ta.sma(k2, periodD2)
//plot(k2, title="%K2", color=#2962FF)
plot(d2, title="%D2", color=#FF6D00)

h0 = hline(80, "Upper Band", color=#787B86)
hline(50, "Middle Band", color=color.new(#787B86, 50))
h1 = hline(20, "Lower Band", color=#787B86)
fill(h0, h1, color=color.rgb(33, 150, 243, 90), title="Background")

Attached Image (click to enlarge)
Click to Enlarge Name: screenshot.png Size: 11 KB
  • #9,976
  • Edited 10:16am Mar 11, 2025 9:53am | Edited 10:16am
Double Stoch Indicator for MT4:
Attached File(s)
File Type: ex4 Double Stoch.ex4   13 KB | 351 downloads
  • #9,977
  • Mar 11, 2025 11:26am Mar 11, 2025 11:26am
To help define the trading zones / areas I have an indicator that draws arrows when the ema's are aligned. If this would be helpful and RobinHood is ok with me posting it, I will post on the thread. The indicator can be developed further to include the rules about the double stoch in post https://www.forexfactory.com/thread/...3#post15176983. Whilst extra indicators distract it maybe useful whilst learning the method.

Attached Image (click to enlarge)
Click to Enlarge Name: screenshot.png Size: 54 KB
  • #9,978
  • Edited 12:16pm Mar 11, 2025 11:58am | Edited 12:16pm
Quoting Ronin-
To help define the trading zones / areas I have an indicator that draws arrows when the ema's are aligned. If this would be helpful and RobinHood is ok with me posting it, I will post on the thread. The indicator can be developed further to include the rules about the double stoch in post https://www.forexfactory.com/thread/...3#post15176983. Whilst extra indicators distract it maybe useful whilst learning the method. {image}
I am good with you posting it and I think that it is an excellent idea. Good job!
Always a Student, Never a Master - Emulate What Works
  • #9,979
  • Mar 11, 2025 12:35pm Mar 11, 2025 12:35pm
Quoting Ronin-
To help define the trading zones / areas I have an indicator that draws arrows when the ema's are aligned. If this would be helpful and RobinHood is ok with me posting it, I will post on the thread. The indicator can be developed further to include the rules about the double stoch in post https://www.forexfactory.com/thread/...3#post15176983. Whilst extra indicators distract it maybe useful whilst learning the method. {image}
Good Job ! Many Thanks for this and your sharing files.
  • #9,980
  • Mar 11, 2025 1:18pm Mar 11, 2025 1:18pm
Hi Robinhood, in your experience using RSO how do you recommend entries,Hiekinashi color change or break and close 8 ema thanks for the amazing thread.
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