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Stochastic secrets

  • #301
  • Nov 4, 2008 8:00pm Nov 4, 2008 8:00pm
Quoting fxtrendline
hi , I think parameter 12 12 18 is good for stoch, what do u think ?
on what time frame?
  • #302
  • Nov 5, 2008 6:24am Nov 5, 2008 6:24am
Quoting eelfranz
Hey all, Another Stochastic training video for your pleasure. Enjoy, Big E

http://www.win-at-trading.com/ts-sto...firmation.html
10x Big E.
  • #303
  • Nov 5, 2008 7:28am Nov 5, 2008 7:28am
Quoting eelfranz
Hey all, Another Stochastic training video for your pleasure. Enjoy, Big E

http://www.win-at-trading.com/ts-sto...firmation.html

thanks for this link

i thot it was interesting that the teacher on this vid was saying that sometimes you can be too early and sometimes you can enter a little late. i think we all struggle with that. what helps me is knowing that i should get out and enter later when things look a little more certain. stochastics are not going to give a perfect signal every time, but I think that it is worth passing up on a weak signal while waiting for a stronger one.
  • #304
  • Nov 5, 2008 9:25am Nov 5, 2008 9:25am
Quoting KudzuFX
thanks for this link

i thot it was interesting that the teacher on this vid was saying that sometimes you can be too early and sometimes you can enter a little late. i think we all struggle with that. what helps me is knowing that i should get out and enter later when things look a little more certain. stochastics are not going to give a perfect signal every time, but I think that it is worth passing up on a weak signal while waiting for a stronger one.
The "Return to innocence"... oh... sorry... make that the return to levels and trendlines
  • #305
  • Nov 5, 2008 1:32pm Nov 5, 2008 1:32pm
Kudz,

Hey buddy, would you mind sharing what two stochastics you use, their settings and time frames... and how you read them going into a set up or trade. I'd appreciate it and it would help all of us to learn something new perhaps.

Stochs is my favorite indicator and I don't use many others.

Thanks, Big E
  • #306
  • Nov 5, 2008 8:44pm Nov 5, 2008 8:44pm
Ciao Guyz this is my first post in this thread
First of all am not FX Pro or experienced Trader am just 16 months FX trader well stoch is my Primary indicator i feel good bcz i had looooong history with it but there r no one place a trade with only one indicator signal Only market makers so sometimes stoch ping fake signal its not fake but its not clear maybe its too late or early so u need a filter with another indicator or 2 indicators market is crazy this days and am trading with stoch and another 3 indicators all of them filter to each other once they ping a clear signal u can see areal magic with stoch
well guyz try
stoch of Red trader sittengs
3.2.3
RSI 3 Levels 40.50.60
Ac to filter first moves
Ao To confirm Trend of AC (cz AO it picks trend slowly so its a good filter)
sure we have our Chart
u can find long and short term trend
and fibo levels
MA 5.8 SHORT term 39.39.60 LOng
now market moves are clear
anyone can setup this TPL and Pls comment
AM sure you can easily identify Stoch signals
and Pls read Price action Jamies16 thread its really gr8 thread too u can filter bad signals logically
GOOD LUCK , be blessed
Adios
Not by Might , Nor by Power .But by my spirit, Saith The LORD of Hosts
  • #307
  • Nov 5, 2008 10:49pm Nov 5, 2008 10:49pm
Quoting eelfranz
Kudz,

Hey buddy, would you mind sharing what two stochastics you use, their settings and time frames... and how you read them going into a set up or trade. I'd appreciate it and it would help all of us to learn something new perhaps.

Stochs is my favorite indicator and I don't use many others.

Thanks, Big E

here's a screen shot. this has the following

yellow line: point of short entry where lines converge below the 90%

blue solid: 99 stoch
blue dotted: 49 stoch
red & pale: 14 stoch
grey: 5 stoch

BLUE lines are a trend tracker
14 stoch is the main one to watch
i almost never take a trade <10 or >90

you won't get every move in the market with this set up but if you are willing to wait you can get good entry points where price appears to be turning. one caution is the if price continues falling or rising the BLUE lines will stay down too (or up). there may be a temptation to take a long. I use the 10RSI to help me judge where a reversal is probable.

one last thing I find it very necessary to have the same lines set up on my M15 and H1 chart. always confirm that the same convergence of stoch lines you see on the M5 is also showing up on at least the M15.
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  • #308
  • Nov 6, 2008 6:29am Nov 6, 2008 6:29am
AUD USD just went up before it retreated. See the chart below
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  • #309
  • Nov 6, 2008 11:31am Nov 6, 2008 11:31am
Kudz, Sami, Cool...

It always amazes me how we all use different systems and indicators to get to the same place....profit.

Kudz... as you pointed out in your system, You can't just use one Stoch to make all of your trading decisions. You have developed multiple stochs that make it happen for you. It's like money in the bank for you. Thanks for sharing with us.

I created another template about 30 days ago. It includes the FREE download... Traders Dynamic Index from www.compassfx.com and my Stochastics (8,3,3). On the TDI I eliminate everything but the green and red lines. I use the levels of 32,50,68.

That's it other than Pivot Points, ADR levels from Compassfx, Supp/Res and trend lines. I use these for possible take profit areas... visual reference only.

If my stochs do not "confirm" the immediate possible trade and everything else I'm viewing, I don't take the trade. It's that important in my trading. It has helped to keep me out of bad trades too.

I build everything around Stochastics. Why? Because I've paid the piper with all the hours of screen time learning to use it to my advantage. If your not willing to spend the time to learn Stochs, it won't do you much good and you will take a lot of bad trades.

My broker loves to pay me every day. Big E
  • #310
  • Nov 6, 2008 4:17pm Nov 6, 2008 4:17pm
http://www.contraryinvestorscafe.com....php?media=141

The link above is talking about what's coming in the markets soon. It will be a blessing to Forex Trading or put us all out of business. You Decide. Big E
  • #311
  • Nov 6, 2008 5:50pm Nov 6, 2008 5:50pm
My Current Chart. Big E
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  • #312
  • Nov 7, 2008 11:38am Nov 7, 2008 11:38am
Quoting RedTrader
I have been using Stochastic for a long time and it’s very well integrated in my trading system. Using it in hundreds of trades had showed some secrets (secrets that I’m not unwilling to share).

But the purpose of this thread is to make other traders who share my view, to unleash their discoveries and techniques on the stochastic.

The attachment contains my currently known and tested facts. (P.S. - updates will come periodically)


Waiting for feedback.
My opinion is that ------>any oscillator observed if on a smaller time frame then it shall have a greater number of periods to arrive at the value.

What i mean is if i go to smaller time frames for my trade setting then i prefer to have higher number of period for the indy i used
crudely speaking----->
TF is 5m, the stoch shall be set to have 65 as number of period
TF is 4h, stoch's number of prd may go to 4
  • #313
  • Nov 8, 2008 9:05am Nov 8, 2008 9:05am
Quoting avani
My opinion is that ------>any oscillator observed if on a smaller time frame then it shall have a greater number of periods to arrive at the value.
Well, if you do that, then on that smaller time frame you will receive almost the exact thing that the same indicator is showing on a bigger time frame (you can use mtf stochastic for that). But the aim is that if you on a smaller tf, to get a signal of an indicator which has a lower combination, in order to be much more sensible. Or you just could not concentrate on shorter tfs and just use bigger tfs, with indis set with a lower combination but use a bigger s/l - witch it's not recommended in the current marker situation.

I'm curious... why would you use the combination you wrote on post #312?

Nice weekend!
  • #314
  • Nov 8, 2008 12:14pm Nov 8, 2008 12:14pm
hi redtrader / hi all ,

hope you doing fine and still collecting the green ones

thanks to kudzu, eelfranz and others for the nice read and thanks for the short videos, its definitely interesting

have a great weekend everybody and a nice (trading) week

see ya
  • #315
  • Nov 8, 2008 12:30pm Nov 8, 2008 12:30pm
Redtrader,

Just a couple of questions for you if you don't mind? I'am in the process
of switching my trading over from the (e-mini-dow) (ym market) to
forex market. I switched jobs and the available hours to trade the forex
is better than the mini-dow with my new job. I've never traded the forex
before so I'am a nubee...to this style of trading.

Question:

1). What do you think of trading the forex with multiple time frames? I always just traded the mini dow on the 5 minute time frame so it's very
different for me?

2). What do you think of trading the forex with mtf using the stochastics
like (spudfires) does? Also this style of trading is different for me. As in
I've never traded this way before. So I don't know if it is a good way to trade or not?

3). If you were brand new to the forex market knowing what you know. Where would you go to learn exactly what you need to know? For example,
forex factory forums. Any specific thread? For just learning the basics of
the forex market. Which market is best or does it matter when a person can trade (hours they can trade) For example I live in "mountain standard time".

4). I've been trading the e-mini-dow for about 3 years now and have learned
a lot about trading. I also trade with the stochastics. Usually the settings
I use are 14-3-3 or 14-2-3 or 14-1-1. It seems those settings work best
with the e-mini-dow not sure about the forex markets. I also tend to be
a scalper. Time frame about 3-5 minutes. I've never tried the e-mini-dow
at $5.00 a point timing long term trades in the futures market.

I hope I gave you enough information for you to give me some good
advice on exactly how to go about switching from the e-mini-dow to
the forex market? And what is the best strategy to use on the forex?
But I do believe part of the answer lies in using the stochastics indicator!

Thank you very much for all your help!!!

snarlyjack
  • #316
  • Nov 9, 2008 10:30am Nov 9, 2008 10:30am
Hi there... long time no see... how are you?

Yeap having a great weekend, hope you did the same

See ya'
  • #317
  • Nov 9, 2008 10:31am Nov 9, 2008 10:31am
Hi there... and welcome (this sound just like the song "hello and welcome" )

so...

Quoting snarlyjack

1). What do you think of trading the forex with multiple time frames? I always just traded the mini dow on the 5 minute time frame so it's very
different for me?
Well... you can trade on FX using 5 min but it's recommended to analyze first bigger tfs - like d1, h4 and h1. Are many systems that use only a tf + a mechanical trading system but it's good to have the big picture, no matter if you are a scalper or a position trader. So, I say that multiple tf it's required.

Quoting snarlyjack
2). What do you think of trading the forex with mtf using the stochastics
like (spudfires) does? Also this style of trading is different for me. As in
I've never traded this way before. So I don't know if it is a good way to trade or not?
Choose an FX broker, open a demo account and experiment. You have the advantage of 3 years of experience but you must accommodate with FX specifics. Notice that dow and fx both use charts, trend lines and so... but the price action is diferent and are many other things that differ. Well... trade using a style that makes you fell ok. Use the same style, of course try to adapt it - but this again, after you fammiliarize with price action.

Quoting snarlyjack
3). If you were brand new to the forex market knowing what you know. Where would you go to learn exactly what you need to know? For example,
forex factory forums. Any specific thread? For just learning the basics of
the forex market. Which market is best or does it matter when a person can trade (hours they can trade) For example I live in "mountain standard time".

Try google or lessons from websites like one of mig broker or interbankfx broker - prefferd brokers on the buttom right of any ff page.

Quoting snarlyjack
4). I've been trading the e-mini-dow for about 3 years now and have learned
a lot about trading. I also trade with the stochastics. Usually the settings
I use are 14-3-3 or 14-2-3 or 14-1-1. It seems those settings work best
with the e-mini-dow not sure about the forex markets. I also tend to be
a scalper. Time frame about 3-5 minutes. I've never tried the e-mini-dow
at $5.00 a point timing long term trades in the futures market.
Those stoch settings work in FX markets but again the same setting could be perfect for let's say eur/jpy but a mess for usd/chf. Search the pair that fits you - that it's very similar to the price action you are used to.

There is no best strategy. There is only psycholocy, trendlines and levels + 1-3 indicators that signal at the same time pointing you to enter a trade.

I hope I've been saying what you wanted to know.

Good luck
  • #318
  • Nov 9, 2008 1:35pm Nov 9, 2008 1:35pm
Snarleyjack,

Welcome back. A good place to go and learn about the forex is www.babypips.com They have free courses on learning about forex trading.

Good Luck, Big E
  • #319
  • Nov 10, 2008 11:06pm Nov 10, 2008 11:06pm
RedTrader and Eelfranz,

Thanks that is exactly what I had in mind!!!

Once again, thank you.

snarlyjack
  • #320
  • Nov 11, 2008 2:42am Nov 11, 2008 2:42am
wow that's a nice pdf document u have, especially the last "7"
i always use stoch, but haven't got the analysis like u did... so nice job bro...
btw, IMO you should provide the pdf with some examples... with the real chart candles, so the readers can understand how to do what u wrote...

but thx for sharing the great information to us...
Money management is good for your health...
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