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bringin sexy back - stochastics

  • #81
  • Edited 7:15pm Jan 23, 2007 7:11pm | Edited 7:15pm
Quoting Tw0eleven
I don't always wait for the 5 to actually cross. Take Trade 1 from my previous post(the buy trade). The 5 never crossed the 20 or 50...but the 5 did pull back the the neutral area before going up. So I used that, along with the doji, and the fact that the 20 and 50 were trending up after having crossed their signal lines. Plus price was consolidating after having aready making a move up a little earlier in the evening. So I had 6 reasons all together of why I should go Long.

The same with Trade number 2, the 5 never came back up to cross the 20 or 50, but it did come back to the neutral area.

Now Trade number 3 did have a 5 cross...but that's because the 20 and 50 lines were coming down to the neutral area.

Hope that helps.
Thanks 211! I understand some of your thoughts now.

When I asked about 5 crossing, I didn't mean cross the 20 or 50, I
meant after the 5 pulls back, then crosses its own signal line.
In your case, after the green line pulls back, and crosses its own
green signal line. Hope you can see what I'm refering to.

So, do you wait for the green line to cross its own green signal
line and for candle to finish forming, before entering a trade?

Anyways, correct me if I'm wrong, but what you are essentially
advising is that we need multiple reasons to enter a trade, right?

You also mention about 5 pulling back to neutral zone, do you
mean the "50" level??

How about your exits?? What's your decision process??
Candlestick patterns like doji, etc??



Thanks
fj
  • #82
  • Jan 23, 2007 7:22pm Jan 23, 2007 7:22pm
Hi FJFX,

Regarding the 5 crossing it's own signal line, I don't wait for a cross. I just wait for the 5 to pull back into the neutral area or better yet(if it happens) the oversold/overbought area.

Personally, I myself need a few good reasons to enter a trade...not just one. Not sure I can explain my thought process because it's different each time depending on the trade setup and time of day. As with my exit strategies. During the Asian session or towards the end of the US session...I'm only looking for 10-15pip gains because there isn't much action. During the London Open through London Close you get much more action so I try to get anywhere from 25-50pips. It all depends on what I see setting up on the charts...and the candle formations. If I see hammers, doji's, railroad track, etc. Then I go ahead and take my profits then usually because a reversal could be coming up. I think the main thing is to enter GOOD trades and MINIMIZE your losses! Get that under control and the rest will fall into place.

Goodluck!
  • #83
  • Jan 23, 2007 7:42pm Jan 23, 2007 7:42pm
Quoting Tw0eleven
Hi FJFX,

Regarding the 5 crossing it's own signal line, I don't wait for a cross. I just wait for the 5 to pull back into the neutral area or better yet(if it happens) the oversold/overbought area.

Personally, I myself need a few good reasons to enter a trade...not just one. Not sure I can explain my thought process because it's different each time depending on the trade setup and time of day. As with my exit strategies. During the Asian session or towards the end of the US session...I'm only looking for 10-15pip gains because there isn't much action. During the London Open through London Close you get much more action so I try to get anywhere from 25-50pips. It all depends on what I see setting up on the charts...and the candle formations. If I see hammers, doji's, railroad track, etc. Then I go ahead and take my profits then usually because a reversal could be coming up. I think the main thing is to enter GOOD trades and MINIMIZE your losses! Get that under control and the rest will fall into place.

Goodluck!
Thanks for the great explaination Tw0eleven and also thanks to boxing for this great stoch strategy which really suites my trading style. The entry using this strategy was triggered nicely just wondering how to spot an exit target. Anybody could share the exit strategy for this system?
  • #84
  • Jan 23, 2007 8:45pm Jan 23, 2007 8:45pm
Quoting Tw0eleven
Hi FJFX,

Regarding the 5 crossing it's own signal line, I don't wait for a cross. I just wait for the 5 to pull back into the neutral area or better yet(if it happens) the oversold/overbought area.

Personally, I myself need a few good reasons to enter a trade...not just one. Not sure I can explain my thought process because it's different each time depending on the trade setup and time of day. As with my exit strategies. During the Asian session or towards the end of the US session...I'm only looking for 10-15pip gains because there isn't much action. During the London Open through London Close you get much more action so I try to get anywhere from 25-50pips. It all depends on what I see setting up on the charts...and the candle formations. If I see hammers, doji's, railroad track, etc. Then I go ahead and take my profits then usually because a reversal could be coming up. I think the main thing is to enter GOOD trades and MINIMIZE your losses! Get that under control and the rest will fall into place.

Goodluck!
Thanks buddy for the quick reply. Learning a lot from ya!
  • #85
  • Jan 24, 2007 3:40am Jan 24, 2007 3:40am
Quoting fjfx
Hi Boxing

For your trades, to you wait for the 5 to cross and candle/bar to
finish forming Before you enter??

Also, I noticed you added one more Sto (100) in yellow, is that
important for your trading decision, so just further reinforcement!

I actually love Sto but didn't think of using multiple Sto for
trade decisions. This reminds me of a mutiple MA system.

So, thanks for your system!!
hey fjfx

i wait for the 5 to cross and the candle to close when its not the perfect setup. for example if 20 and 50 are above 80 means its an uptrend but if they crossed their signals down means its starting to trend down so in that case to be more on the safe side i wait for the bar to close and the 5 to cross.

otherwise if everything is pointing for a good trade then i enter once price has consolidated or when i see a reversal bar

the 100 stochastics is mainly for timeframes of 1h or longer. its just extra confirmation

hope that helps
  • #86
  • Jan 24, 2007 4:01am Jan 24, 2007 4:01am
Quoting Tw0eleven
Here's another 10 easy pips of the GBP/USD 5min. Hope someone got them!
good to see u doin good in ur trading. i saw the opportunity but it was late. feel free you and the others to post todays trades that happened or anything else since ill be away for some time today and will be busier and busier from now on.(university starts back very soon)

1 thing i wanna say to everyone.

for exits look for a few things.
time of day
pair's daily range
how good of a setup it is
consolidation
for 5 to get to an extreme number

and please read post 82 by 2eleven
he explains targets/exits in a very good way

enjoy everyone and dont miss me too much lol
  • #87
  • Jan 24, 2007 4:14am Jan 24, 2007 4:14am
Looks as though GBP/CHF is going to be heading up for a bit.
Attached Image
  • #88
  • Jan 24, 2007 6:52am Jan 24, 2007 6:52am
Quoting moonchild
Looks as though GBP/CHF is going to be heading up for a bit.
yea we might have a nice setup in a couple hours

as for teh stochastic bundling i was checking out some stuff and noticed they are alot better when theres no trend and its just a range. but when theres a trend the stochastic bundling could happen and price will continue up. thats a slingshot when the 20 and 50 are over 80 or under 20 and the 5 pulls back and then follows the 20 and 50. maybe uve looked into it more but a quick glance and ive noticed its better to trade this when the pair has been ranging which is the case of usdchf the example u posted 3 pages ago. nonetheless its a perfect way to catch reversals and very efficient but id rather take a trade with the trend and since theres a trend in even as small as a 1 or 5 min chart then i look for those. to me they are high percentage
  • #89
  • Jan 24, 2007 8:24am Jan 24, 2007 8:24am
Nice thread

How do you determine is it trending, just on Stoch 50 and 20 analysis?
  • #90
  • Jan 24, 2007 8:53am Jan 24, 2007 8:53am
Hi, Been looking at your style and trying to learn it for the past day. All of it! Started to see crossed-eye trying to see it and figure it out. Seems like what your doing, "to me that is", that your waiting for a minor trend catching the retrace or "Ross Hook" and following trend until the 5 stoch has been exhausted? Your just using the different stoch. to help you determine if ther's going to be a reversal on your currrent trend. It looks good. But, the only thing i saw is for example the 5 min. gbpusd just now on its last little down slope. The 50 was good, below signal, but the 20 merged with its signal. Do you let that stop you from taking that trade? It did move a good 50 pips.
Thank you for your time.
  • #91
  • Jan 24, 2007 2:57pm Jan 24, 2007 2:57pm
ahil:

yes thats all i use to determine trend and the 100 for longer time frames like 1h or longer

broc0501:

even though it was a good move i wouldnt have taken it. my main thing is to look for the best setups. i ignore setups that are not really good. theres a really good setup at least once a day just by lookin at 2-3 pairs or glancing around other pairs. so yea it would have stopped me from taking the trade. sorry about the bit of mess with the info its a bit scattered now. ill try to get things more organized to the first post. otherwise check the examples i posted and if ur still confused post some charts of setups and ill tell u if ur lookin for the right ones and what ur missing and stuff.

this is a trade from today and another one could be forming in the next few hours
Attached Image
  • #92
  • Jan 24, 2007 5:55pm Jan 24, 2007 5:55pm
Hi Boxing

Once again, thanks for your system and frequent chart posts
of daily trades.

Just a curious question about the parameters settings for
your Stoch like 20,10,20 and 50,10,20 and 100....

Was your settings for k,d and slowing from experience thru tweaking??
Or is there any mathematical reasoning for using those numbers??
How about using fib numbers?? Ever tried?? E.g. 21,8,21??
I'm not challenging, just wondering??

Also, do you use the same settings for all the pairs you trade,
or are adjustments required for different pairs.

Thanks
  • #93
  • Jan 25, 2007 3:30am Jan 25, 2007 3:30am
Quoting fjfx
Hi Boxing

Once again, thanks for your system and frequent chart posts
of daily trades.

Just a curious question about the parameters settings for
your Stoch like 20,10,20 and 50,10,20 and 100....

Was your settings for k,d and slowing from experience thru tweaking??
Or is there any mathematical reasoning for using those numbers??
How about using fib numbers?? Ever tried?? E.g. 21,8,21??
I'm not challenging, just wondering??

Also, do you use the same settings for all the pairs you trade,
or are adjustments required for different pairs.

Thanks
hey fjfx u can try fib numbers. i tried a few different variations but in the end wanted a short term and a medium term
and the 100 is a long term.
but i suggest u try out fib numbers and try different things. some settings might suit u better although my settings are very good so its up to u

yes same settings for all pairs. i try to make everything as simple and easy as possible when starring at a chart coz if i dont i might just go insane and bang my head against the wall.

hope that helps
  • #94
  • Jan 25, 2007 3:38am Jan 25, 2007 3:38am
Quoting ePIPhany
Your title caught my attention and I'm glad it did. I've been trading using Stochs for the last year but never this way so it's a refreshing strategy.
I appreciate everyone posting chart, it's a great way to learn. I hope to be able to do my share.

Question:
In the first image; as you noted the 20, 50, and 100 are all above 80 and there is bearish divergence. Wouldn't this make you reconsider a long position?
I find Stochastic Divergence to be a good leading indicator.

The second image just tells the story.

"... you can whip me if I misbehave ..."
when u saw the divergence in the first picture, price went up another 150-200 pips. u can see that all the way till the drop happened. be careful its true stoch divergence is pretty good but u just skipped like 5-6 days of data. the trade i took was successful and i got out and then a while later price dropped. but the divergence u posted has nothing to do with the drop because the drop happened on the 24th while the divergence happened on the 18 and thats when i took the successful trade and got out on the 23rd

lol i dont know if ur confused or ur doing this on purpose to make it sound like it doesnt work or anything but please check what u post first then post it

thank you
  • #95
  • Jan 25, 2007 5:19am Jan 25, 2007 5:19am
Hi and thanks for sharing this.

During the last few days of watching your chart I have notice that when 5 crossed 20 and 50, it is a strong indication of price moving, even before the 20 and 50 have crossed their signal lines.

Have you found this to be true, or am I just seeing what I want to see?
  • #96
  • Jan 25, 2007 7:22am Jan 25, 2007 7:22am
Quoting boxingislife
hey fjfx u can try fib numbers. i tried a few different variations but in the end wanted a short term and a medium term
and the 100 is a long term.
but i suggest u try out fib numbers and try different things. some settings might suit u better although my settings are very good so its up to u

yes same settings for all pairs. i try to make everything as simple and easy as possible when starring at a chart coz if i dont i might just go insane and bang my head against the wall.

hope that helps
Boxing, thanks heaps for the explanation.

As I mention before, I'm not challenging nor doubting,
just trying to better understand the whole mechanics of your system.

..... I like your system !! fj
  • #97
  • Jan 25, 2007 8:02am Jan 25, 2007 8:02am
Quoting boxingislife
lol i dont know if ur confused or ur doing this on purpose to make it sound like it doesnt work or anything but please check what u post first then post it
thank you
SORRY!! MY BAD.

I shouldn't be posting at 3am in the morning. I completely missed the time and date. My apologies. I did not do this purposely. I have no intention to make your system sound like it doesn't work. On the contrary it worked very well this morning on the Cable. And since I like using Stochs, I quite like this system.

Like I said "... you can whip me if I misbehave ... " - JT

Thanx
  • #98
  • Jan 25, 2007 10:30am Jan 25, 2007 10:30am
Quoting ePIPhany
SORRY!! MY BAD.

I shouldn't be posting at 3am in the morning. I completely missed the time and date. My apologies. I did not do this purposely. I have no intention to make your system sound like it doesn't work. On the contrary it worked very well this morning on the Cable. And since I like using Stochs, I quite like this system.

Like I said "... you can whip me if I misbehave ... " - JT

Thanx
lol no problem trust me i know about the 3 am posting only to wake up and say wtf?

its no big deal and please if u have any questions feel free to post im here to answer and help people trying my method out
  • #99
  • Jan 25, 2007 10:41am Jan 25, 2007 10:41am
like i said theres at least one really good trade a day. if u can make 30-50 pips with one trade and call it a day why not? if u can make more thats even better

gbpusd 1h chart
while im sure theres other trades on different pairs and timeframes that one was enough to make ur day.
Attached Image
  • #100
  • Jan 25, 2007 10:56am Jan 25, 2007 10:56am
im not the biggest fan of taking a trade when the 20 and 50 are very close together but a few things convinced me into taking this one

-1h chart so i was expecting some action.
-also asian session was about to open which means action
-the setup was really good with 5 pulling back all the way into overbought or at least above the 80 line which is what triggered my entry
-price has been trending down on the 1h. lower highs and lower lows

even if i was doubting for a second id wait for the 5 to cross down and the bar to close and price starts drifting down then u can enter.
Attached Image
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