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Stochastic secrets

  • #101
  • Sep 24, 2008 1:31am Sep 24, 2008 1:31am
Quoting RedTrader
Good morning!

Indeed 1 min chart is not made for everybody but 5 min is, for an even better entry point, if you consider tightening the s/l 10x for the values. By the way, regarding mtf... it still crashes... and I don't know mql4 programming hmmm that leaves me with the "old-fashioned" swich from wk to d1 to h1 and so on... wich as a result leaves me with more "physical exercise"

good morning

i have no problems with the mtf-indicator anymore, the problem with freezing the platform disappeared...but you can try this one, hope so much this one will work for you
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File Type: mq4 #MTF Stochastic v2.0.mq4   6 KB | 1,003 downloads
  • #102
  • Sep 24, 2008 8:39am Sep 24, 2008 8:39am
Quoting Titus
good morning

i have no problems with the mtf-indicator anymore, the problem with freezing the platform disappeared...but you can try this one, hope so much this one will work for you
Hurray! This one works well. 10x
  • #103
  • Sep 24, 2008 11:22am Sep 24, 2008 11:22am
Just wanted to say that stoch is pretty much the only indicator I use. A friend of mine who got me into FOREX uses it and taught me a little trick with it that offers pretty nice verification on a trade.
When you really think about it, it is all mental
  • #104
  • Sep 24, 2008 12:57pm Sep 24, 2008 12:57pm
Quoting Xennon
Just wanted to say that stoch is pretty much the only indicator I use. A friend of mine who got me into FOREX uses it and taught me a little trick with it that offers pretty nice verification on a trade.
Welcome Xennon!

Would you like to share that "little trick" (don't forget, copyright guaranteed)
  • #105
  • Sep 24, 2008 2:48pm Sep 24, 2008 2:48pm
Howdy Red,

It mostly ignores the 80s and 20s. but when a trend occurs and the stoch shows... difficult without a chart to show ya. Im drunk and not in the mood...

If a trend is heading up (basically a 15min + chart), and the stoch is also heading up... by that i mean the stoch heads up some and drops and then heads up passed where it was at its peak last time means the trend will continue. the same for the bearish side. My friend has a HH HH, HL HH.. you get the picture, system.

If the stoch hits 80 then I will wait till it starts the down trend. When it hits 80+, it could continue the trend or switch down.

Aside from your reason from asking I was torn. My bud told me this and it seems to work well more than 50% of the time. We had a chat whether or not to mention this to the FX community here. The reasons being that we don't want this to get out (for the not telling and making pips while it still works aspect), vs. the telling everyone and if it catches on we will have more backing money wise to do this.

Anywho, with his permission I am allowed to let you all in on our lil' secret. take from it what you want. bashing of this partial system will not be appreciated in the least, but then again you are all welcome to your opinion.

Luck be with 49% of you!
When you really think about it, it is all mental
  • #106
  • Sep 25, 2008 12:52am Sep 25, 2008 12:52am
10x Xennon

Good morning everyone!

As I said, today I posted a new updated pdf in the first post. Again, I thank to those who shared one or another and I wait for other examples, techniques etc. regarding stoch. You know "from people taken, to people given" as a guide for newbies and as a trading knowledge base update for experienced traders.

Green pips to all!
  • #107
  • Sep 25, 2008 2:47am Sep 25, 2008 2:47am
good morning

just saw you updated your pdf, im feeling due to post some trades, remember im watching multiple timeframes with these stoch-values and watch for divergences and multiple overbought/oversold crossings in trenddirection. strong signals appear at hourly and 4h candle closes--new one opens. for example, i see a hammer or engulfing on 1h i watch for signals in direction of the candlestick, signal would be stoch coming out of over.b.s. on 1,3,(5)min. chart. stoch give me nice entry and exits.

the loosing trade was bad luck, i entered at the red dotted line but order didnt get filled and entered at the price you see, but who cares, a loss is a loss
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  • #108
  • Sep 25, 2008 3:12am Sep 25, 2008 3:12am
just closed my short scalp e/u for 50p, this was risky but when i see opportunity with risk:reward 1/3 i take it

see ya later
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  • #109
  • Sep 26, 2008 1:49am Sep 26, 2008 1:49am
Quoting Titus
just closed my short scalp e/u for 50p, this was risky but when i see opportunity with risk:reward 1/3 i take it

see ya later
Good morning!

I've never traded e/u on 1 min tf but it looks like you do it very well.
It "was risky" but the chart was very clear, so easy decision making.

From Monday I'll have more time to trade those green "dots".

More green pips!
See ya'
  • #110
  • Sep 26, 2008 2:18am Sep 26, 2008 2:18am
good morning!

i said risky because the bigger tf was in an uptrend, i prefer signals in trenddirection, but this one was great

good to hear you have more time for trading next week...! ...trading rocks

Quoting RedTrader
Good morning!

I've never traded e/u on 1 min tf but it looks like you do it very well.
It "was risky" but the chart was very clear, so easy decision making.

From Monday I'll have more time to trade those green "dots".

More green pips!
See ya'
  • #111
  • Sep 26, 2008 2:27am Sep 26, 2008 2:27am
Quoting Titus
trading rocks
  • #112
  • Sep 26, 2008 5:12am Sep 26, 2008 5:12am
Hi, thanks for such a great thread on stochs. They are my favourite oscillator too. I read somewhere in the previous posts regarding its reliability on smaller time frames, well I use them on a 1 min chart with a typical 8 3 3 setting taking only signals in the direction of the trend. The indicator is only as good as your interpretetion of the trader, the timeframe doesn't matter. At least I like to think that way.

STOCHASTICS readings are like music to my what would be a chaotic trading session.

Thanks to the thread starter and the other contributors.
  • #113
  • Sep 26, 2008 9:02am Sep 26, 2008 9:02am
Quoting aiyahmarklah
Hi, thanks for such a great thread on stochs. They are my favourite oscillator too. I read somewhere in the previous posts regarding its reliability on smaller time frames, well I use them on a 1 min chart with a typical 8 3 3 setting taking only signals in the direction of the trend. The indicator is only as good as your interpretetion of the trader, the timeframe doesn't matter. At least I like to think that way.

STOCHASTICS readings are like music to my what would be a chaotic trading session.

Thanks to the thread starter and the other contributors.
Welcome!

Glad to hear those from u! 10x for sharing!

That's right, the time-frame doesn't matter - you can use only bigger tf or choose to scalp using lower tf but either way the indi is a useful tool (and I sincerely liked this) when "interpreted" by the trader (as used as a part of a strategy and experience).

The part with the music it's indeed original and at the same time true. I would add up that IF FOR A SONG, A CERTAIN INSTRUMENT WILL MAKE THE SONG COMPLETE, FOR A TRADER, AN INDICATOR WOULD ENNOBLE THE TRADING STYLE.
  • #114
  • Sep 26, 2008 9:54am Sep 26, 2008 9:54am
Quoting RedTrader
Welcome!

Glad to hear those from u! 10x for sharing!

That's right, the time-frame doesn't matter - you can use only bigger tf or choose to scalp using lower tf but either way the indi is a useful tool (and I sincerely liked this) when "interpreted" by the trader (as used as a part of a strategy and experience).

The part with the music it's indeed original and at the same time true. I would add up that IF FOR A SONG, A CERTAIN INSTRUMENT WILL MAKE THE SONG COMPLETE, FOR A TRADER, AN INDICATOR WOULD ENNOBLE THE TRADING STYLE.
Yes indeed, every analytical methods works over time with experience. I admire your conviction towards using indicators depsite this subject being almost totally ostracized in the general retail trading public.

Well for the music part, its borrowed from a analogy from Victor Neiderhoffer. The original concept was applying it to price action. However, personally I find it even more relevant when applied on stochs. Put a music score beside a price chart with stochs, you see the similarity. It has to be "felt". Stochastics helps you to "listen" to the market.

  • #115
  • Sep 26, 2008 10:19am Sep 26, 2008 10:19am
Quoting aiyahmarklah
Yes indeed, every analytical methods works over time with experience. I admire your conviction towards using indicators depsite this subject being almost totally ostracized in the general retail trading public.

Well for the music part, its borrowed from a analogy from Victor Neiderhoffer. The original concept was applying it to price action. However, personally I find it even more relevant when applied on stochs. Put a music score beside a price chart with stochs, you see the similarity. It has to be "felt". Stochastics helps you to "listen" to the market.

I'm for the indis because of the experience. The fact that the general retail public tend to "throw indicators to the trash" (as someone said) it's because the lack of experience and professionalism. If a person who doesn't know how to use the gear, will get out of a car after several failed attempts to start it and say that the car it's useless, it would find himself in the same situation of those traders about I was talking before => the car it's useful, as the indicators are.

"Stochastics helps you to <<listen>> to the market." it's something that I would like to keep as a quote, if I may. (I like music )

I wish you all a nice weekend!
  • #116
  • Sep 26, 2008 10:35am Sep 26, 2008 10:35am
Quoting RedTrader
I'm for the indis because of the experience. The fact that the general retail public tend to "throw indicators to the trash" (as someone said) it's because the lack of experience and professionalism. If a person who doesn't know how to use the gear, will get out of a car after several failed attempts to start it and say that the car it's useless, it would find himself in the same situation of those traders about I was talking before => the car it's useful, as the indicators are.

"Stochastics helps you to <<listen>> to the market." it's something that I would like to keep as a quote, if I may. (I like music )

I wish you all a nice weekend!
Sure I am flattered that you would keep what I wrote as a quote.

I have traded for some years, back then when I started ( i can't verify just an observation) , indicators are the in thing. Now it is price action. However one thing has not changed, the percentage of winners and losers.

Cheers
  • #117
  • Sep 26, 2008 10:53am Sep 26, 2008 10:53am
Here is a wiki article on Stochastic, in its context, without the technical analysis jargon.

http://en.wikipedia.org/wiki/Stochastic
  • #118
  • Sep 26, 2008 11:29am Sep 26, 2008 11:29am
i read and am tring redtraders move on the stoch, it has been working right, Right now thats the systerm am woring on to perfect on in, i need more guild to this. I have been trading for a bout 6 months but no realy trading systerm.
Redtrader can i make that a system of mine as it works for me perfectly well?

Lekwas
Lekwas
  • #119
  • Sep 28, 2008 7:33pm Sep 28, 2008 7:33pm
Hey Red Trader and all,

If I knew how to put a chart here I would do it. Step by step instructions would help - please!! Anyway-

Bring up a EUR/USD 5 min. Chart. Make up arrows green and down arrows red.

Your first Stoch just below your chart is 25,2,3 and the second Stoch is 5,3,3.

I use the Top Stoch for my normal complete trade. I use the bottom for Entry/Exits only. I only place a trade when the top Stoch hits the top or bottom of it's channel.

The times below are from my FXDD Charts. Other Brokers times will be different.

Look at this on your FXDD 5 min. chart: 9-26-08 @ 21:35 time. It's a red sell candle. Note the top Stoch is at the top of the channel in this consolidation area. Now look at the bottom Stoch for my entry...short.

Now ALL MY ATTENTION stays on the top Stoch as it slowly moves down. When it reaches the bottom of it's channel I close the position (9-29-08 @ 0:15 time) using the Exit on the bottom Stoch (which is used 85% + of the time) for Entry/Exit signals only. I made 94 pip's profit.

Take your chart Off of Auto Scroll and go back on your chart as far as you want to and back test these settings for Stoch. You will see that regardless of market direction you will make money normally if you follow the two rules.

Rules:
Again, wait until you hit the top or bottom on your top Stoch channel(25,2,3). I let the top Stoch complete it's cycle before getting in/out again. Use the bottom Stoch for your entry/exits. Then follow the top Stoch - top to bottom or vise versa. Forget about the minor ups and downs you will see on the 5,3,3 Stochs.

I generally use a 15/20 pip stop loss if I'm away from the computer 15 min or so. Otherwise I'd manually take myself out of the trade if it's gone against me 5-7 pip's. Doesn't happen often.

It works for me and hope it helps many others. Big E

  • #120
  • Sep 28, 2008 7:52pm Sep 28, 2008 7:52pm
Note: If my upper stoch (25,2,3) turns before I reach the top or bottom of it's channel, I look at the bottom stoch (5,3,3) to make my next move - close the trade and buy or sell at that time... what ever it tells you. Big E
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