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Stochastic secrets

  • #141
  • Oct 7, 2008 1:09am Oct 7, 2008 1:09am
Hmmm no activity in the last days (maybe because of the bailout)

I've restructured and updated the pdf from the first post. Now it contains all the techniques that I use. I named the document "Stochastic7" because 7 it's my favorite number

10x to the contributors.

See ya all from time to time. As much green pips as possible
  • #142
  • Oct 7, 2008 3:06am Oct 7, 2008 3:06am
Nice piece of work !! Congrats

  • #143
  • Oct 7, 2008 3:30am Oct 7, 2008 3:30am
Thanks, good theme. The helpful information.
  • #144
  • Oct 7, 2008 6:11pm Oct 7, 2008 6:11pm
salutari si bine ne-am gasit. ma bucur sa mai vad un frate de suferinta/bucurie pe aici.
vad ca esti serios cu stochs. nu am apucat sa citesc inca pdf-ul tau, dar o fac curand. la ce nivel tranzactionezi?
Market can stay irrational longer than you can stay solvent.
  • #145
  • Oct 7, 2008 6:47pm Oct 7, 2008 6:47pm
Lets see if the upload worked this time.
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  • #146
  • Oct 7, 2008 7:35pm Oct 7, 2008 7:35pm
Look at the post above #145. My explination how I use the stochs is on pages 8 & 9. Now click on the chart #145 post. You will note this is eur/usd, 5 minute chart. Top Stoch is 25,2,3. Bottom one is 5,3,3 settings. I wait for the 25,2,3 to hit the top or bottom of the channel. When it does I start looking at 5,3,3 for entry or exit. On this chart you will see 5,3,3 crossing over at the first red vertical line. 5,3,3 is also crossing over heading south (short). This is my sell sign. If at all possible I want 25,2,3 to go all the way from the top to the bottom in any example. Note how much smoother 25,2,3 is than 5,3,3. After I place the trade I give most of my attention to 5,3,3 Stoch. You notice from the 5,3,3 I had two opportunities to exit. First when 5,3,3 hit the bottom of it's channel or when 25,2,3 hit the bottom of it's channel. The decision is mine. Note* anytime the line crosses (25,2,3) below (in this case) the 50 line I then have the choice as when to exit... anytime after it goes below 50 or wait until the 25,2,3 hits it's bottom (in it's channel.) The second red vertical line was the end of this trade for me. ALSO NOTE THAT AT THE END OF THIS TRADE YOU COULD HAVE ENTERED AN LONG TRADE. Once the 25,2,3 got above the 50% line, it was my choice again when to exit. On occasions I have had losing trades that cost me 5-7 pips before I got out manually. This trade is a no brainer. Just wait for the 25,2,3 to get to the top or bottom of it's channel. Look at the 5,3,3 for entry (long or short) or exit. I like trading the lower time frames because the Stoch cycles more often. It's just one tool I use. Anyway, it works for me. Big E
  • #147
  • Oct 7, 2008 7:48pm Oct 7, 2008 7:48pm
Almost looks like the last one. Could have gone long after this trade too. BigE
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  • #148
  • Oct 7, 2008 7:55pm Oct 7, 2008 7:55pm
Again.. you select where to exit. Big E
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  • #149
  • Oct 7, 2008 8:00pm Oct 7, 2008 8:00pm
#2.. you decide where to exit... red line 2 or 3. BIG E
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  • #150
  • Oct 7, 2008 8:04pm Oct 7, 2008 8:04pm
Ignore the 4th red line on the chart above. It was for something else. Big E
  • #151
  • Oct 7, 2008 10:56pm Oct 7, 2008 10:56pm
OK, just completed on 1 minute Chart. Market flat with only 15 pip range (candles top to bottom on the chart). Stoch 25,2,3 at bottom of it's channel. Stoch 5,3,3 signals Buy (long) with lines crossing up. Bought at 1.3580, sold at 1.3593. Made 13 pips in a 15 pip range! 25,2,3 went from bottom to top of channel. 5,3,3 took 3 tries to go from bottom to top. Happens all day long every few minutes on the 1 minute chart. Big E
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  • #152
  • Oct 8, 2008 3:18am Oct 8, 2008 3:18am
Quoting FXBat
salutari si bine ne-am gasit. ma bucur sa mai vad un frate de suferinta/bucurie pe aici.
vad ca esti serios cu stochs. nu am apucat sa citesc inca pdf-ul tau, dar o fac curand. la ce nivel tranzactionezi?
Salutare!

... frate de bucurie ... in nici un caz de suferinta.

Daca am inteles bine intrebarea - la ce nivel tranzactionez - pot spune (cu o totala lipsa de modestie) ca tranzactionez la un nivel care se gaseste in zona profesionistilor
  • #153
  • Oct 8, 2008 3:19am Oct 8, 2008 3:19am
Hi eelfranz!

I've seen you posts. It's scalping and it's done very good

You know, sometimes it's just fun to trade the mini trends.

Have you considered rading on bigger tfs (h4, h1)?

See ya'
  • #154
  • Oct 8, 2008 2:45pm Oct 8, 2008 2:45pm
Quoting eelfranz
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

nice Big E

by channel do you mean the area the 25 stoch goes up and down in?
  • #155
  • Oct 8, 2008 3:24pm Oct 8, 2008 3:24pm
KUDZUFX,

Exactly right. It's the area I can see on my indicator for 25,2,3... from top to bottom of the channel. Big E
  • #156
  • Oct 8, 2008 3:37pm Oct 8, 2008 3:37pm
hi eelfranz,

i trade 1 min charts, i m done trading today so i played around with the 25 2 3 settings, the lag seems a little too much to take. How do you interprete those readings ? As in more details.
  • #157
  • Oct 8, 2008 3:44pm Oct 8, 2008 3:44pm
OK RedTrader. Take a look on the 1 hour chart. Note right after this trade is ended the market goes sideways...i.e. it can't be traded except on the lower TF liken 1 minute or 5 minute. If I'm not mistaken this trade took 19 hours. I would have been so bored by then I would have gone to cut a cord of wood to dull the boredom. My personality is for 1 minute to 15 minute charts or I lose interest... that's just me. Note on this trade that 25,2,3 & 5,3,3 were on the bottom of their channels. 5,3,3, gave a signal to go long @1.3454. on the exit (second red vertical line) it was 1.3675. Today 10/8/08. I did not take this trade because I DON'T TRADE THESE Tf'S. BUT YOU WANTED TO KNOW IF IT COULD BE TRADED ON A HIGHER TF SO HERE IT IS MY FRIEND. Big E
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  • #158
  • Oct 8, 2008 4:36pm Oct 8, 2008 4:36pm
Aiya..... If you check back to page 8 and above I explain how I use my Stoch settings. One day while playing with the STOCH SETTINGS i came accross 25,2,3 and put it on top of another Stock of 5,3,3 on the EUR/USD which is one of two currencies I trade. I clicked on properties and unchecked the auto scroll. I went way back and wanted to see if there was any way to use this combination together to find upcoming trades. I liked the 25,2,3 because it was a slow smoothed line as compared to the 5,3,3. To my amazement I began to notice that when 25,2,3 was at the bottom of the channel and 5,3,3 was the same... I could use the 5,3,3 as an entry or exit signal. As 5,3,3 lines crossed up (being on the bottom of it's channel) I saw I could enter a trade. I then noticed as 25,2,3 rose to the top of it's channel, the 5,3,3 would cross over down telling me where to exit. I'VE SEEN THIS 100'S OF TIMES. Regardless of what the Stochastics was originally for, this proved to me to be a reliable set up. As I'm sure you have noticed the 5,3,3 jumps up and down several times during one of my trades. If the 25,2,3 appears that it is losing it's steam before it gets to the top of it's channel... I keep an eye on the 25,2,3 to make sure it's not falling along it's travel upwards. If it looks shakey I look to the 5,3,3 to find an exit (Crossover down). This works for both long or short trades. I stumbled across this forum one day and put in my two cents. End of story. Right, wrong, or ... it works for me and i wanted to share it hoping it would help others. I PREFER THE 1 AND 5 MINUTE CHARTS BECAUSE i like the quick action and it keeps my mind focused so I DON'T LOOSE INTEREST IN TRADING. BIG E
  • #159
  • Oct 9, 2008 2:33am Oct 9, 2008 2:33am
Quoting eelfranz
OK RedTrader. Take a look on the 1 hour chart. [...] I DON'T TRADE THESE Tf'S. BUT YOU WANTED TO KNOW IF IT COULD BE TRADED ON A HIGHER TF SO HERE IT IS MY FRIEND. Big E
Thanks


P.S. Indeed, a good system (based on stoch).
  • #160
  • Oct 9, 2008 3:26am Oct 9, 2008 3:26am
Quoting eelfranz
Aiya..... If you check back to page 8 and above I explain how I use my Stoch settings. One day while playing with the STOCH SETTINGS i came accross 25,2,3 and put it on top of another Stock of 5,3,3 on the EUR/USD which is one of two currencies I trade. I clicked on properties and unchecked the auto scroll. I went way back and wanted to see if there was any way to use this combination together to find upcoming trades. I liked the 25,2,3 because it was a slow smoothed line as compared to the 5,3,3. To my amazement I began to notice that when 25,2,3 was at the bottom of the channel and 5,3,3 was the same... I could use the 5,3,3 as an entry or exit signal. As 5,3,3 lines crossed up (being on the bottom of it's channel) I saw I could enter a trade. I then noticed as 25,2,3 rose to the top of it's channel, the 5,3,3 would cross over down telling me where to exit. I'VE SEEN THIS 100'S OF TIMES. Regardless of what the Stochastics was originally for, this proved to me to be a reliable set up. As I'm sure you have noticed the 5,3,3 jumps up and down several times during one of my trades. If the 25,2,3 appears that it is losing it's steam before it gets to the top of it's channel... I keep an eye on the 25,2,3 to make sure it's not falling along it's travel upwards. If it looks shakey I look to the 5,3,3 to find an exit (Crossover down). This works for both long or short trades. I stumbled across this forum one day and put in my two cents. End of story. Right, wrong, or ... it works for me and i wanted to share it hoping it would help others. I PREFER THE 1 AND 5 MINUTE CHARTS BECAUSE i like the quick action and it keeps my mind focused so I DON'T LOOSE INTEREST IN TRADING. BIG E
Thanks for your reply.
I get the idea, appreciate it.
I like 1 min charts for the same reason as yours.

regards
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