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The Art of Trading with MTF Stochastics

  • #821
  • Jan 10, 2008 2:46pm Jan 10, 2008 2:46pm
Glen,
You are making a very good point here...when you trade a daily chart, are your settings different? And would you place your trade at the close of New Your session?
Thanks,
CanuckCT

Quoting glenn5t
Thankyou for your comments.

I agree with your comments re: Daily/4hr on the G/J and I would discourage anyone new or with limited experince from trading this pair and would sujest they look at the eur/usd, gbp/usd or the aud/usd......where a SL of 50 pips will be fine.....
Of course if you use the Murry math lines you can set your Sl above the 4/8 or 8/8 lines and that should be ok......
When i trade off the dailies i dont use a SL at all......in the last 8 days the G/Y has fallen some 875 pips... and in the last 3 days the Aud/Usd has gone up some 255 pips on its way to 90.00cents plus...and the G/U some fall of 338 pips....

So there is very much a good profit to be made with the slower moving pairs....You should have a look at your stocth setup on a daily you maybe suprise at how clear the signals are .

Glenn
  • #822
  • Jan 10, 2008 2:54pm Jan 10, 2008 2:54pm
Quote
CanuckCTDaily settings
Glen,
You are making a very good point here...when you trade a daily chart, are your settings different? And would you place your trade at the close of New Your session?
Thanks,
CanuckCT
I use a different set of indicators......if k2kv agrees i will post a daily setup....agin one I have cobbled from different methods....I check the charts at the start of the new candle....maybe a 15/20min excerise then I go and do something else.

I can not take credit for any of my setups I own it all to the many experts that are members of this great forum..

Glenn
  • #823
  • Jan 10, 2008 3:38pm Jan 10, 2008 3:38pm
Hi Glenn,

Feel free to post your setup. All I ask is that we keep the discussions primarily related to trading MTF Stochs. It's perfectly fine (and very much appreciated) for you to explain what you're doing so that we can understand it fully, but I would like to remain somewhat focused here. Thanks for asking!

Now, I have a question:

I've been playing with the MM lines since you posted them, replacing my fibs on just one of my charts, to see if they might work better. Since you mentioned that the GJ tends to fade back and forth from 0/8 - 4/8, etc., earlier today I took a long trade on the H1 chart, from 0/8 (214.02) with a target of 2/2 (214.80) -- hey, I'm not greedy.

Sure enough, my target was hit a little while ago for a profit of +78 pips. Did I follow you correctly, or was I just lucky? Most pleasant trade of the last two weeks. Also, the only trade I've taken on a demo in months!

To keep the discussion on focus, I should mention that I never trade the H1, so taking a look at my MTF stochs on this chart was quite a revelation -- I had the cleanest, most perfect setup I'd seen all week (and it's been a really bad week here in M5-land), albeit against the main trend. Was the best setup of the day, with 15/30/60 all rising smoothly together to the top, making my target an easy one.

I'd like to hear your comments.

Thanks!

Quoting glenn5t
I use a different set of indicators......if k2kv agrees i will post a daily setup....agin one I have cobbled from different methods....I check the charts at the start of the new candle....maybe a 15/20min excerise then I go and do something else.

I can not take credit for any of my setups I own it all to the many experts that are members of this great forum..

Glenn
Attached Image
Jeff Singer, K2KV
  • #824
  • Jan 10, 2008 4:22pm Jan 10, 2008 4:22pm
Quote
k2kvHi Glenn,

Feel free to post your setup. All I ask is that we keep the discussions primarily related to trading MTF Stochs. It's perfectly fine (and very much appreciated) for you to explain what you're doing so that we can understand it fully, but I would like to remain somewhat focused here. Thanks for asking!

Now, I have a question:

I've been playing with the MM lines since you posted them, replacing my fibs on just one of my charts, to see if they might work better. Since you mentioned that the GJ tends to fade back and forth from 0/8 - 4/8, etc., earlier today I took a long trade on the H1 chart, from 0/8 (214.02) with a target of 2/2 (214.80) -- hey, I'm not greedy.

Sure enough, my target was hit a little while ago for a profit of +78 pips. Did I follow you correctly, or was I just lucky? Most pleasant trade of the last two weeks. Also, the only trade I've taken on a demo in months!

To keep the discussion on focus, I should mention that I never trade the H1, so taking a look at my MTF stochs on this chart was quite a revelation -- I had the cleanest, most perfect setup I'd seen all week (and it's been a really bad week here in M5-land), albeit against the main trend. Was the best setup of the day, with 15/30/60 all rising smoothly together to the top, making my target an easy one.

I'd like to hear your comments.

Thanks!
Hi k2kv

Yes you followed it correctly......you bought in over sold area..-1/8 and you were wise to take the profit at 3/8 as you were going against the 4hr and daily trend....
Also there was a nice candle setup on the 1hr...showing a retracment and of course as i said before the jap twins love the fib no's so it retracted to the 3/8ths line or 38.2% on the fibs....

I have included my daily.....you will see its very simple and the entry point is at the open of a new candle look at the AO and see if its over the zero line....I also use the stoch rope to confirm but also to jump in some times before the new candle as the new daily candle can reverse..( especialy the G/J)
Again the stoch rope entry if different from the new candle is a solid rope passing the outer fib no's.....

You will also note that by useing the daily you can see in advance if a pair are setting up....as you can see on the G/J pic, the pair are at 1/8 and the stoch is in over sold area...

so I will watching the next few days with intrest....also note how the murry Math lines give us a possible target in the case of a move long...4/8th line 224.81....according to me from wheres its trading at this moment that is around...1038 pips.....of course we will not get all of them but it could be a good move...

Glenn
Attached Image(s) (click to enlarge)
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Click to Enlarge Name: gj 4hr.gif Size: 21 KB
Click to Enlarge Name: gj daily.gif Size: 29 KB
  • #825
  • Jan 10, 2008 4:30pm Jan 10, 2008 4:30pm
Those looking for a slower moving pair the G/U looks like it maybe setting up as well..

Attached Image (click to enlarge)
Click to Enlarge Name: gu daily.gif Size: 23 KB
  • #826
  • Jan 10, 2008 4:34pm Jan 10, 2008 4:34pm
K2Kv

just looking at your chart again and I see with intrest that both the entry 0/8 and exit 3/8 are close to the pivots on your chart....

That again would confirm the support / resistance of the two areas..

Glenn
  • #827
  • Jan 10, 2008 6:39pm Jan 10, 2008 6:39pm
Just to follow alone with the setup....I have included a Daily U/J..todays new candle....

Note I entered on the Stoch, I did not wait for the new bar over the zero on the AO indicator... Again note we are coming off a 1/8 th line.....possible target 4/8th line... 112.45...

This trade will either go up or down.....lol...we shall see ..

Glenn
Attached Image (click to enlarge)
Click to Enlarge Name: uj daily.gif Size: 24 KB
  • #828
  • Jan 10, 2008 6:43pm Jan 10, 2008 6:43pm
This trade will either go up or down.....lol...we shall see ..

Don't they all do that...if we just knew for sure which...

I do love FOREX!!!
  • #829
  • Jan 10, 2008 6:45pm Jan 10, 2008 6:45pm
PipAV8tor

Thanks for the file....I agree it works well.....but I think I will leave you to sit in front of the computer all the time...

Glenn
  • #830
  • Jan 10, 2008 9:00pm Jan 10, 2008 9:00pm
So Glenn,
I presume this to be a buy on the daily. But I'm not getting how MM numbers would be considered. Since it's now trading above 3/8, then the target would be 5/8? That's 163.92ish?
Thanks,
CanuckCT
  • #831
  • Jan 10, 2008 9:07pm Jan 10, 2008 9:07pm
Quote
CanuckCTEJ buy on daily?
So Glenn,
I presume this to be a buy on the daily. But I'm not getting how MM numbers would be considered. Since it's now trading above 3/8, then the target would be 5/8? That's 163.92ish?
Thanks,
CanuckCT
my chart was for Usd/Jpy.... althought looking at the chart you posted its a buy as well....just be carefull at the 4/8 line....
It may move to the next octave....( 4/8 to 8/8)......so if she powers passed the 4/8 line lock in the profit and let her run...

Glenn
  • #832
  • Jan 10, 2008 9:17pm Jan 10, 2008 9:17pm
The Eur/Usd chart is a zero bounce.....be carefull no momentum can go any where......

but with the stoch in overbought area......more likely to fall.........but its a no trade...

Glenn
Attached Image (click to enlarge)
Click to Enlarge Name: eu daily.gif Size: 23 KB
  • #833
  • Jan 10, 2008 10:34pm Jan 10, 2008 10:34pm
I must add.....my charts are my view and only a guide,,,,

please make your own trade's....based on your charts/indicators....If you wish to use some of the indicators I post then please try them on a DEMO Account untill you learn how to trade with them..


Do Not take my charts as a trade signal...


Glenn
  • #834
  • Jan 10, 2008 10:55pm Jan 10, 2008 10:55pm
Hi Glenn,

Wow!!

So much information to absorb. But, what do you mean by "Zero bounce?" Also, when you say "no momentum," are you basing that on the AC indicator being near the zero line?

Thanks...

Quoting glenn5t
The Eur/Usd chart is a zero bounce.....be carefull no momentum can go any where......

but with the stoch in overbought area......more likely to fall.........but its a no trade...

Glenn
Jeff Singer, K2KV
  • #835
  • Jan 11, 2008 12:08am Jan 11, 2008 12:08am
I have never traded this pair but the setup was there and here is what it looked like. I'm including my preferred template on the left and one similar to Glenn's on the right. I realize Glenn, that your template is used by you on longer time frames. I'm thinking it works pretty well on M5 also.

Stoch below 50 and heading down nicely, macd confirmed a bit later and absolute strength was negative. And the price action (candle patterns) were saying sell.

Original target was 4/8 and I just removed my profit target in time as it seems to have more downside. SMI turned but never went above zero....and then turned back down. Would have exited if it went much above zero as that seems to be the key level for this indicator.

I'm living in the wrong time zone for this...Asian session in 1am eastern has loads of tradeable patterns.

Happy trading.

Cheers,
CanuckCT
Attached Images
  • #836
  • Jan 11, 2008 1:59am Jan 11, 2008 1:59am
Hi Guys.

k2kvHi Glenn,

Wow!!

So much information to absorb. But, what do you mean by "Zero bounce?" Also, when you say "no momentum," are you basing that on the AC indicator being near the zero line?






Yes zero bounce is when the pair come to the zero line and do not cross but theres not to much momentum to take it back the way it came....
add the stoch is in over bought area......

CanuckCT

using the indicators on a 5min may give a lot of false entries/ exits.....with the AB strenght you need to wait for it to turn up and split into the dotted line and the solid line, the bigger the seperation the stronger the move and the sharper the angle up the stronger the move.....
with the MM lines...you are on a small time frame so it will be common to see the pair go from 8/8 to 1/8....or the full range +2/8 to -2/8th....particularly during volatile times like Frankfurt/london opens...

The best indicator to have on the 5 min would be the momentum indicator...and wait for it to cross the 50 line to enter.

Glenn
Attached Image (click to enlarge)
Click to Enlarge Name: eu daily.gif Size: 29 KB
  • #837
  • Edited 2:22pm Jan 11, 2008 11:21am | Edited 2:22pm
Hi all,

Took a very nice +60 pips this morning following Glenn's good advice regarding MM lines.

I entered long GBPJPY after price had climbed above the 1/8 line (if I had been awake earlier I would have entered above the 0/8 line for double the fun). Set my TP to just below the 00 near the 2/8 line. So, basically, I traded a 1/8 move.

15/30/60/240 stochs all pointing up and climbing.

Nice smooth move, very little heat. Still on demo with this method, but so far it's given me three great trades: +78, +36 yesterday, +60 today. Nice feeling (Thanks Glenn...).

Hope everyone has a great weekend!
Attached Image
Jeff Singer, K2KV
  • #838
  • Jan 11, 2008 2:10pm Jan 11, 2008 2:10pm
Quote
k2kvLast trade of the week
Hi all,

Took a very nice +60 pips this morning following Glenn's good advice regarding MM lines.

I entered long GBPJPY after price had climbed above the 1/8 line (if I had been awake earlier I would have entered above the 0/8 line for double the fun). Set my TP to just below the 00 near the 2/2 line. So, basically, I traded a 1/8 move.

15/30/60/240 stochs all pointing up and climbing.

Nice smooth move, very little heat. Still on demo with this method, but so far it's given me three great trades: +78, +36 yesterday, +60 today. Nice feeling (Thanks Glenn...).
Good to see ,,,,,Its a nice method when you get to know how to read the indicators...

have a good weekend all..

Glenn
  • #839
  • Jan 13, 2008 7:03pm Jan 13, 2008 7:03pm
I spent the entire weekend reading the original thread by spud and now this continuation...i must say that this is a great methodology....i'm sure everyone would agree with me that i appreciate everyone taking the time to explain their trades and reasoning....i've been a long time reader of this board, and hopefully i will be able to contribute something meaningful in the future...

best wishes,

cl
  • #840
  • Jan 13, 2008 7:09pm Jan 13, 2008 7:09pm
A quick question about MM...

What are the timeframe settings you guys use for this indicator....is it set to "0" so that the current chart timeframe is reflected in the settings....or is it set to be specific to the 1H chart?

Thanks,

cl
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