I would definitely time your entry, if you get in, with the 5 min chart. you don't have a lot of room to maneuver, so you need to be more precise and make sure the 5/15 and 30 are all bouncing toward the larger time frame.
The Art of Trading with MTF Stochastics
Hi Moneda,
The 15 has turned up on my screen. I would wait awhile. I don't know how this pair usually runs, but there might be too little volume at this time of day to stabilize your short trade.
Just a thought.
Good luck!
The 15 has turned up on my screen. I would wait awhile. I don't know how this pair usually runs, but there might be too little volume at this time of day to stabilize your short trade.
Just a thought.
Good luck!
Hello,
A possible rubberband trade. The 60 and the 240 are in an oversold area. The 30 is flatenning out and the 15 is crossing the 76.4 with a sharp angle. I might wait for the 30 candle to be completed and see if it starts to point down. Volatility is low around this time so I may skip it and go to bed. What do you guys think?
Jeff Singer, K2KV
Hello Guys,
Thanks for the feedback. I agree with your evaluation, that is why I went to bed and got some needed rest. There were a couple of opportunities as I slept but more will come. This morning we can see on the charts below that the aud/jpy broke a major trendline yesterday and presently is heading up....at least for now.
On the 15min chart the MTF Stochs are gathering in the overbought area and the 4hr is above the 23.6. We will see what happens after the Non Farm announcement. I don't expect to make a trade until the dust settles unless I find a scalping opportunity with the 1/5/15 MTF Stoch chart.
Happy pipping today and have a great weekend.
Thanks for the feedback. I agree with your evaluation, that is why I went to bed and got some needed rest. There were a couple of opportunities as I slept but more will come. This morning we can see on the charts below that the aud/jpy broke a major trendline yesterday and presently is heading up....at least for now.
On the 15min chart the MTF Stochs are gathering in the overbought area and the 4hr is above the 23.6. We will see what happens after the Non Farm announcement. I don't expect to make a trade until the dust settles unless I find a scalping opportunity with the 1/5/15 MTF Stoch chart.
Happy pipping today and have a great weekend.
Unus pro omnibus, omnes pro uno
Hello Moneda,
Can you please tell us on what indication you based your long decision? This will help me focus in (I need all the help I can get today).
And -- where do you get all those cool animated icons?
Thanks much!
Can you please tell us on what indication you based your long decision? This will help me focus in (I need all the help I can get today).
And -- where do you get all those cool animated icons?
Thanks much!
Hello,
Went long....(12:51pm est)see chart. Feedback welcome.
P.S: If you live in the U.S....don't forget to set your clock back one hour!
Jeff Singer, K2KV
Jeff,
How are you doing? Okay, let us deal with the most important question that you had....the emotions icons...that is an easy one. If you look at the taskbar above the area where I/you would type a reply...click the down arrow next to the happy face. Now your next question...I went long based on several things:
The 4hr was well above the 23.6 are heading up
The 15min had momentum and heading towards the 76.4
The 30min was at the 50.0 level a bit flat but if the 15min continued up it would follow it. Remember Spud's comment about the higher time frames being a series of smaller time frames?
The 60min flat but well above the 23.6
Price above the 21sma and the 84sma
Upper Bollinger Band point up and opening up with plenty or room between price and the top band
Price above pivot line with room to spare until meeting R1
And most important of all.....Itchy fingers
I see that trade as an Escalator to Pip strategy except that the MTF are well above the 23.6 but pretty much together.
I exited at 1:05pm for +10pips - $.92 commission.
I am not always that systematic with my trades. Sometimes is just a combination of the method and gut/experience feeling.
The question now is....will I sit on my hands and not risk my gains for today?
HELP!
How are you doing? Okay, let us deal with the most important question that you had....the emotions icons...that is an easy one. If you look at the taskbar above the area where I/you would type a reply...click the down arrow next to the happy face. Now your next question...I went long based on several things:
The 4hr was well above the 23.6 are heading up
The 15min had momentum and heading towards the 76.4
The 30min was at the 50.0 level a bit flat but if the 15min continued up it would follow it. Remember Spud's comment about the higher time frames being a series of smaller time frames?
The 60min flat but well above the 23.6
Price above the 21sma and the 84sma
Upper Bollinger Band point up and opening up with plenty or room between price and the top band
Price above pivot line with room to spare until meeting R1
And most important of all.....Itchy fingers
I see that trade as an Escalator to Pip strategy except that the MTF are well above the 23.6 but pretty much together.
I exited at 1:05pm for +10pips - $.92 commission.
I am not always that systematic with my trades. Sometimes is just a combination of the method and gut/experience feeling.
The question now is....will I sit on my hands and not risk my gains for today?
HELP!
Unus pro omnibus, omnes pro uno
- #170
- Nov 2, 2007 1:56pm Nov 2, 2007 1:56pm
Mo,
This late in the day on Friday, I would not risk it. I got stuck in one on a Friday and when my platform opened back up on Sunday night, I was minus about 250 pips. Fortunately, that was on a Demo account, but it was a lesson learned. I can get you some Cortaid to help that itch!!
Besides, it is the WEEKEND!! 
There ya go Jeff, lots of emoticons!!
This late in the day on Friday, I would not risk it. I got stuck in one on a Friday and when my platform opened back up on Sunday night, I was minus about 250 pips. Fortunately, that was on a Demo account, but it was a lesson learned. I can get you some Cortaid to help that itch!!
Besides, it is the WEEKEND!! There ya go Jeff, lots of emoticons!!
Pip,
I will not be needing the Cortaid today...
I looked at my week's results and I was a bit dissapointed with my profits so my hand began to itch...Just one more...but I purposely distracted myself with a couple of chess games online and the urge to scratch went away!!!
Thanks for the reminder.
Have a great weekend!
Were you piloting this one?
I will not be needing the Cortaid today...
I looked at my week's results and I was a bit dissapointed with my profits so my hand began to itch...Just one more...but I purposely distracted myself with a couple of chess games online and the urge to scratch went away!!!Thanks for the reminder.
Have a great weekend!
Were you piloting this one?
Unus pro omnibus, omnes pro uno
- #173
- Nov 2, 2007 10:54pm Nov 2, 2007 10:54pm
Pip,
I will not be needing the Cortaid today...
Thanks for the reminder.
Have a great weekend!
Were you piloting this one?
"Don't bother runnin', you'll just die tired!", but now I',m into pips, not lead.
:
- #176
- Edited 11:18am Nov 4, 2007 11:11am | Edited 11:18am
Hi everyone,
This is my first time posting in this thread but before I posted anything I wanted to be sure I understood what I was looking at in regards to Spud’s methods. This post will not be about the traditional MTF method or Escalator to Pips, but rather another method that Spud put together called “Spuds Stochastic Thread Theory”. If you have not yet read it I encourage you to do so at http://www.forexfactory.com/showthread.php?t=37111
This is going to be e lengthy post so please bear with me while I get through what I am trying to get across. In the end it will hopefully come together nicely.
One thing that Spud advocated with the Thread Theory was following the trend and taking trades that were in the direction of the primary trend. Yes I know it sounds like common sense but how many people actually do it who knows they should do it? But the biggest question that many people ask to this day is “how do we know if the trend is continuing or reversing?”
Well the simple answer is we don’t. And if you know for a fact that it is then you must have a crystal ball to tell you so. But how important is it really to know that the trend has ended and reversed direction? When we are given the ability and the tools to trade in the direction of the primary trend and when the time is right and the charts are screaming at you that there is a correction occurring that may produce some nice profits? Yes boys and girls there are times that the charts will scream at you. I have even on occasion been smacked by my charts…lol
Ok so how then do we determine the primary trend? Well I don’t know how you do it but I will tell you how I do it.
On my chart you will see a 55 EMA. You will also see the Stochastic indicator setup just the way Spud says to do it in his thread “Spuds Stochastic Thread Theory”. With the exception that I use different colors for my own benefit. The Bars at the bottom is the Stochastic Thread Elasticity indicator. The lines are levels. The same levels spoke about in his “Spud's Multi Time Frame Strategy Guide” thread. The colors in the background are nothing more than colored rectangles like the gray one that appears in the chart area. All I did was stretch them out across the long haul. Someday I may have to stretch them again…lol.
I like to use the 55 EMA to provide a visual reference to what price is doing at that time. Usualy (not always) when price is trading above or below this EMA the market will trend in that direction providing entry opportunities in that direction. But that is not the only thing we should be looking at. We MUST look at PRICE ACTION to help confirm what the market and the indicators are telling us.
On this first chart (Daily EUR/USD) we are clearly in a bullish trend. But wait what is that we see? That’s right boys and girls it’s a double top. Now this is a clue but not a be all end all for a trading decision. Now look closely at what the “Stochastic Thread” is telling us. (Ok from hear on out I am going to call it the Rope cause the term Thread gets confusing) So the Rope has converged in the overbought zone and a peak as formed indicated by the blue arrows. I do not have the ability to sit in front of the charts all day long so I like to position trade using he Daily for direction and trade setups and scale down to the 4H for timing my entry.
So looking at this same point let’s scale down to the 4H and see what is happening. I left the blue arrow so you can see where the daily chart showed us the completion of the peak formation. But look at the indicator on the 4H. It is coming unraveled so we wait for a better entry signal.
In my personal trading experiences I have been fortunate o choose the correct direction of a move the majority of the time but lacked the timing. I would tend to get into a trade too early and get stopped out only to see it move in the direction I originally anticipated. If you are like me that is really frustrating and can have a really bad effect on your trading mentality.
Ok back to the trade.
Shortly after the unraveling we see the Rope converging near the upper area near the overbought zone and moving in unison. A peak is formed indicated by the salmon colored arrows. Now I am a big chicken S_ _ T when it comes to entering a trade and prefer the market prove it is going to go in or continue in the direction I am anticipating. So instead of entering a market order at the close of the next bar, I enter a sell stop indicated by the horizontal line at 1.3712. Why here you may ask? Well quite simply it is a few points below a recent support level which f broken would be a good clue that a move downward is underway. However I must note this type of trade is not taken without taking into account previous areas f support and resistance.
As you can see the second bar after the signal was given entered me into the trade. Ok so now monitoring the trade we can see that a couple days later the rope is producing a nice elasticity formation. The turn of the elasticity is indicated by the second salmon arrow. Again I am not big on entering at market so I place another entry below the most recent support at 1.3630. And low and behold 2 bars later I am entered into the market again with 2 trades working.
Great now I am in the trades; but how do we get out of them?
Well look at the vertical yellow line. This is where I would have exited both positions without question. Why would I do that?
Well that answer is simple. I know the primary trend is up and that I have caught a nice move that may have been a correction or it could be the development of a bearish trend. Either way I really don’t care. But what I do care about is on e daily my rope has converged again but this time in the oversold area and created a peak. I am no dummy because like Spud said “when all the threads converge something is going to happen.” So I get out and run to the bank. And as you can se the primary trend picked back up and continued to become a great bull move. Incidentally this trade produced 272 and 190 pips for each position taken respectively.
I hope this example helps someone with their timing and understanding on how to combine the basic tools that have shown to us.
Trend Direction
Price Action
Support and Resistance
And timing our trades with the use of the Stochastic indicator
One last note for those of you wishing to learn more about how to combine price action to your trading toolbox I highly suggest you read the James16 Thread.
Happy trading folks the markets will be opening soon.
Best Regards,
Trader_V
This is my first time posting in this thread but before I posted anything I wanted to be sure I understood what I was looking at in regards to Spud’s methods. This post will not be about the traditional MTF method or Escalator to Pips, but rather another method that Spud put together called “Spuds Stochastic Thread Theory”. If you have not yet read it I encourage you to do so at http://www.forexfactory.com/showthread.php?t=37111
This is going to be e lengthy post so please bear with me while I get through what I am trying to get across. In the end it will hopefully come together nicely.
One thing that Spud advocated with the Thread Theory was following the trend and taking trades that were in the direction of the primary trend. Yes I know it sounds like common sense but how many people actually do it who knows they should do it? But the biggest question that many people ask to this day is “how do we know if the trend is continuing or reversing?”
Well the simple answer is we don’t. And if you know for a fact that it is then you must have a crystal ball to tell you so. But how important is it really to know that the trend has ended and reversed direction? When we are given the ability and the tools to trade in the direction of the primary trend and when the time is right and the charts are screaming at you that there is a correction occurring that may produce some nice profits? Yes boys and girls there are times that the charts will scream at you. I have even on occasion been smacked by my charts…lol
Ok so how then do we determine the primary trend? Well I don’t know how you do it but I will tell you how I do it.
On my chart you will see a 55 EMA. You will also see the Stochastic indicator setup just the way Spud says to do it in his thread “Spuds Stochastic Thread Theory”. With the exception that I use different colors for my own benefit. The Bars at the bottom is the Stochastic Thread Elasticity indicator. The lines are levels. The same levels spoke about in his “Spud's Multi Time Frame Strategy Guide” thread. The colors in the background are nothing more than colored rectangles like the gray one that appears in the chart area. All I did was stretch them out across the long haul. Someday I may have to stretch them again…lol.
I like to use the 55 EMA to provide a visual reference to what price is doing at that time. Usualy (not always) when price is trading above or below this EMA the market will trend in that direction providing entry opportunities in that direction. But that is not the only thing we should be looking at. We MUST look at PRICE ACTION to help confirm what the market and the indicators are telling us.
On this first chart (Daily EUR/USD) we are clearly in a bullish trend. But wait what is that we see? That’s right boys and girls it’s a double top. Now this is a clue but not a be all end all for a trading decision. Now look closely at what the “Stochastic Thread” is telling us. (Ok from hear on out I am going to call it the Rope cause the term Thread gets confusing) So the Rope has converged in the overbought zone and a peak as formed indicated by the blue arrows. I do not have the ability to sit in front of the charts all day long so I like to position trade using he Daily for direction and trade setups and scale down to the 4H for timing my entry.
So looking at this same point let’s scale down to the 4H and see what is happening. I left the blue arrow so you can see where the daily chart showed us the completion of the peak formation. But look at the indicator on the 4H. It is coming unraveled so we wait for a better entry signal.
In my personal trading experiences I have been fortunate o choose the correct direction of a move the majority of the time but lacked the timing. I would tend to get into a trade too early and get stopped out only to see it move in the direction I originally anticipated. If you are like me that is really frustrating and can have a really bad effect on your trading mentality.
Ok back to the trade.
Shortly after the unraveling we see the Rope converging near the upper area near the overbought zone and moving in unison. A peak is formed indicated by the salmon colored arrows. Now I am a big chicken S_ _ T when it comes to entering a trade and prefer the market prove it is going to go in or continue in the direction I am anticipating. So instead of entering a market order at the close of the next bar, I enter a sell stop indicated by the horizontal line at 1.3712. Why here you may ask? Well quite simply it is a few points below a recent support level which f broken would be a good clue that a move downward is underway. However I must note this type of trade is not taken without taking into account previous areas f support and resistance.
As you can see the second bar after the signal was given entered me into the trade. Ok so now monitoring the trade we can see that a couple days later the rope is producing a nice elasticity formation. The turn of the elasticity is indicated by the second salmon arrow. Again I am not big on entering at market so I place another entry below the most recent support at 1.3630. And low and behold 2 bars later I am entered into the market again with 2 trades working.
Great now I am in the trades; but how do we get out of them?
Well look at the vertical yellow line. This is where I would have exited both positions without question. Why would I do that?
Well that answer is simple. I know the primary trend is up and that I have caught a nice move that may have been a correction or it could be the development of a bearish trend. Either way I really don’t care. But what I do care about is on e daily my rope has converged again but this time in the oversold area and created a peak. I am no dummy because like Spud said “when all the threads converge something is going to happen.” So I get out and run to the bank. And as you can se the primary trend picked back up and continued to become a great bull move. Incidentally this trade produced 272 and 190 pips for each position taken respectively.
I hope this example helps someone with their timing and understanding on how to combine the basic tools that have shown to us.
Trend Direction
Price Action
Support and Resistance
And timing our trades with the use of the Stochastic indicator
One last note for those of you wishing to learn more about how to combine price action to your trading toolbox I highly suggest you read the James16 Thread.
Happy trading folks the markets will be opening soon.
Best Regards,
Trader_V
Nothing is impossible, with a willing mind!
- #177
- Nov 4, 2007 11:50am Nov 4, 2007 11:50am
- Joined Oct 2007 | Status: Summer is the best time of year! | 1,284 Posts
Hello Trader_V
I've been doing some experimenting with these methods and believe it have great promise. There were great trades last week for GBPJPY and USDCAD using the stochastic rope. Do you have the elasticity indicator that you are using in your charts? I can't seem to find it and the Spuds Stochastic Thread Theory thread does not seem to have it the way it displays on your chart.
Thanks,
CanuchCT
I've been doing some experimenting with these methods and believe it have great promise. There were great trades last week for GBPJPY and USDCAD using the stochastic rope. Do you have the elasticity indicator that you are using in your charts? I can't seem to find it and the Spuds Stochastic Thread Theory thread does not seem to have it the way it displays on your chart.
Thanks,
CanuchCT
Hi everyone,
This is my first time posting in this thread but before I posted anything I wanted to be sure I understood what I was looking at in regards to Spud’s methods. This post will not be about the traditional MTF method or Escalator to Pips, but rather another method that Spud put together called “Spuds Stochastic Thread Theory”. If you have not yet read it I encourage you to do so at http://www.forexfactory.com/showthread.php?t=37111
This is going to be e lengthy post so please bear with me while I get through what I am trying to get across. In the end it will hopefully come together nicely.
One thing that Spud advocated with the Thread Theory was following the trend and taking trades that were in the direction of the primary trend. Yes I know it sounds like common sense but how many people actually do it who knows they should do it? But the biggest question that many people ask to this day is “how do we know if the trend is continuing or reversing?”
Well the simple answer is we don’t. And if you know for a fact that it is then you must have a crystal ball to tell you so. But how important is it really to know that the trend has ended and reversed direction? When we are given the ability and the tools to trade in the direction of the primary trend and when the time is right and the charts are screaming at you that there is a correction occurring that may produce some nice profits? Yes boys and girls there are times that the charts will scream at you. I have even on occasion been smacked by my charts…lol
Ok so how then do we determine the primary trend? Well I don’t know how you do it but I will tell you how I do it.
On my chart you will see a 55 EMA. You will also see the Stochastic indicator setup just the way Spud says to do it in his thread “Spuds Stochastic Thread Theory”. With the exception that I use different colors for my own benefit. The Bars at the bottom is the Stochastic Thread Elasticity indicator. The lines are levels. The same levels spoke about in his “Spud's Multi Time Frame Strategy Guide” thread. The colors in the background are nothing more than colored rectangles like the gray one that appears in the chart area. All I did was stretch them out across the long haul. Someday I may have to stretch them again…lol.
I like to use the 55 EMA to provide a visual reference to what price is doing at that time. Usualy (not always) when price is trading above or below this EMA the market will trend in that direction providing entry opportunities in that direction. But that is not the only thing we should be looking at. We MUST look at PRICE ACTION to help confirm what the market and the indicators are telling us.
On this first chart (Daily EUR/USD) we are clearly in a bullish trend. But wait what is that we see? That’s right boys and girls it’s a double top. Now this is a clue but not a be all end all for a trading decision. Now look closely at what the “Stochastic Thread” is telling us. (Ok from hear on out I am going to call it the Rope cause the term Thread gets confusing) So the Rope has converged in the overbought zone and a peak as formed indicated by the blue arrows. I do not have the ability to sit in front of the charts all day long so I like to position trade using he Daily for direction and trade setups and scale down to the 4H for timing my entry.
So looking at this same point let’s scale down to the 4H and see what is happening. I left the blue arrow so you can see where the daily chart showed us the completion of the peak formation. But look at the indicator on the 4H. It is coming unraveled so we wait for a better entry signal.
In my personal trading experiences I have been fortunate o choose the correct direction of a move the majority of the time but lacked the timing. I would tend to get into a trade too early and get stopped out only to see it move in the direction I originally anticipated. If you are like me that is really frustrating and can have a really bad effect on your trading mentality.
Ok back to the trade.
Shortly after the unraveling we see the Rope converging near the upper area near the overbought zone and moving in unison. A peak is formed indicated by the salmon colored arrows. Now I am a big chicken S_ _ T when it comes to entering a trade and prefer the market prove it is going to go in or continue in the direction I am anticipating. So instead of entering a market order at the close of the next bar, I enter a sell stop indicated by the horizontal line at 1.3712. Why here you may ask? Well quite simply it is a few points below a recent support level which f broken would be a good clue that a move downward is underway. However I must note this type of trade is not taken without taking into account previous areas f support and resistance.
As you can see the second bar after the signal was given entered me into the trade. Ok so now monitoring the trade we can see that a couple days later the rope is producing a nice elasticity formation. The turn of the elasticity is indicated by the second salmon arrow. Again I am not big on entering at market so I place another entry below the most recent support at 1.3630. And low and behold 2 bars later I am entered into the market again with 2 trades working.
Great now I am in the trades; but how do we get out of them?
Well look at the vertical yellow line. This is where I would have exited both positions without question. Why would I do that?
Well that answer is simple. I know the primary trend is up and that I have caught a nice move that may have been a correction or it could be the development of a bearish trend. Either way I really don’t care. But what I do care about is on e daily my rope has converged again but this time in the oversold area and created a peak. I am no dummy because like Spud said “when all the threads converge something is going to happen.” So I get out and run to the bank. And as you can se the primary trend picked back up and continued to become a great bull move. Incidentally this trade produced 272 and 190 pips for each position taken respectively.
I hope this example helps someone with their timing and understanding on how to combine the basic tools that have shown to us.
Trend Direction
Price Action
Support and Resistance
And timing our trades with the use of the Stochastic indicator
One last note for those of you wishing to learn more about how to combine price action to your trading toolbox I highly suggest you read the James16 Thread.
Happy trading folks the markets will be opening soon.
Best Regards,
Trader_V
- #179
- Nov 4, 2007 2:56pm Nov 4, 2007 2:56pm
Bundubill,
Do you already have the MTF Stoch indicator? If not you will find it here:
http://www.forexfactory.com/showthre...icator&page=54
Post #806
To put different MTF Stoch timeframes you must first open one window with your first MTF Stoch (15min) then the remaining three all you need to do is go back to Navigator, select the MTF indicator by clicking and holding the button and dragging it to your first window and change the timeframe in the INPUTS TAB.
Good luck
Good luck
Good morning,
Jeff, are you ready for some Fo..... Hope you are doing fine. This week we have friends visiting us from Colorado so over the weekend I have been reviewing the Thread method. I think I am going to base my entries on the 4hr and fine tune it with the lower time frames. At present we have some elasticity.... I am going for the rope!....hopefully not around my neck
Good luck to all!
Jeff, are you ready for some Fo..... Hope you are doing fine. This week we have friends visiting us from Colorado so over the weekend I have been reviewing the Thread method. I think I am going to base my entries on the 4hr and fine tune it with the lower time frames. At present we have some elasticity.... I am going for the rope!....hopefully not around my neck
Good luck to all!
Unus pro omnibus, omnes pro uno