The Art of Trading with MTF Stochastics

Marcin,

Nice going!... I think that K2kv also traded the same pair for + pips!

Guys,

Based on the recent announcements, the JPY looks to be strong through the Asian session. The stochs are lined up pretty well and there may be some really good opportunities. Good Luck if you decide to trade.

Hi all,

Just thought I'd post two examples of the bringing back sexy setup on the recent usdjpy charts.

Chart on the left shows a perfect short trade setup. Traded for +8 and got out when the 5 stoch crossed down into oversold. Time of day means relatively light action, and the 5's didn't have too far to go, so that worked for me.

Chart on the right is an example of a good long setup that is not quite as perfect, with the 5's about to cross. Angle was not steep enough to give me confidence, so I passed, even though it turned out to be a great trade: +15 or so as I write this.

Have fun!

there is clasic entry long EU now,i take it

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closing half of position .leaving the rest to reach pivot

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I exited,that is my personality,didnt want to wait for price reach the pivot.
firtst exit +10 pips,second exit +10 pips,
hope you trade it with me.this was my first clasical trade and it was realy something beautiful,so nice to trade

just made quick +5 pips on AJ,that was elasticity trade with 15/30 joining 4/1H however I would prefer 4H and 1H to be a litille bit higher,daily stoch was at my favor,I could wait but that is just me

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Marcin,


I am in the same trade with the aud/jpy but I am planning to stay with it longer.... the feds strong inclination to lowering the interest rate may give us a significant bullish day today...we will see. Since you are targeting 10pip (+/-), how do you come up with your stop loss target?

Thanks

next trade for +7pips on U/J,that was very similar setup to previous trade,elasticity trade with 15/30 joining 4/1H wit daily pointing up.
Each of trades could make easily 30-40 pips .I made + 5 and +6.4,I need to wrk out the better exit criteria and fihgt my fear of loosing

Moneda ,it is time to exit AJ ,it reach resistance from 1h chart

my SL criteria are combination of pivot,S/R from 4H and 1H chart,but I keep an aye on longer times frames as well,but primaly I watch behaving of stochastic.I am doing what Spud learn us in his thread,that is the matter of fimiliarity of stochastic movement and how they affect each other.
My bigest problem now is that my most trades are thw winner but from time to time I have a loosing trade as well and this lost is bigger than winner trade,that hurts me but there is a lot to be improve in my trading as you see my entries are good for 15-30 pips and I exit with 5-10 pips,anyway I am very happy with my result

Very interesting thread guys. I have but one question with regards to elasticity. Does the 4hour has to be in overbought and oversold area for elasticity to work. And, does it have to be up or down with the direction of the elasticity itself. Right now i'm following the USD/Yen and all indicators are oversold or very close too but the 4hour chart just crosses overbought pointing down. Thanks so much in advance guys. Amazing thread. REally

Hi Fearless!

According to the rules, the H4 should be overbought/sold. We occasionally trade (or push the trade) when it is somewhat out of this area, but your risk increases the further H4 is from where it is supposed to be.

When trading elasticity, you are trading toward the H4. The idea is that the lower TF stoch is "snapping back" to the H4, thus the term, "elasticity." It is also often referred to as a rubber band or slingshot trade.

Hope that helps.

Thanks for joining our discussion, and good trading to you...

Fearless,


I am afraid that is not an elastic trade. It looks to me more like an Escalator to Pips once the 15/30/60 come out of the oversold area (20) and heads towards the 4hr. With this particular trade you would be going with the 4hr trend which makes it safer trade.

Thank you guys for your prompt reply. I was under the impression that trading towards the 4hour is called elasticity. I could be wrong. However, my main concern here is does it matter which direction the 4hour stochs is pointing. Meaning, in the example im working on the 4hour stoch dropped from overbought heading down. If all our other timeframes start coming out of oversold towards the 4hour chart, does it matter if it was still pointing down rather than sideways or pointing upwards. Thanks so much in advance guys. I do forex all day everyday for years, and i must say this thread is very impressive. I have been following it for couple of weeks now, and friday was the first time i used the elasticity method, and i had a good 45 pips profit. So i'm pretty excited about all of this. I also have been using another indicator with the stochastics that react before stochastics, and it has been good to me in the past. If anybody is interested i could share it with who ever wants to know. cheers

Hi.
You can trade elasticity in many ways,I sugest to read Spud original thread.
I prefer the 4H to be oversold/overbought but I think it is nothing bad to trade when 15M is crosing 50 line and moving to join 30M and 1H in overbought/oversold area and the 4h has crossed 20/80line and and pointing in the right direction.
The example is the chart U/J rightnow.,I exited this trade with +5 pips.
If you are still in the trade be carefull because there is the resistance which I can see from 1H chart and 30M has left oversold area which is the sign to consider exit.

thanks marcin. Just to make sure i got this right, you were shorting that trade as soon as the 15min crossed the 50 line heading south to the 30 and 60min stoch. Do you use 50 line as a filter before entering your trades. I didn't enter any trade yet because i was only looking to go long when i see the atleast the 30min crossing the oversold area. Thanks