Spud's Predictive MTF Stochastics

You do have a valid point there.

Down move is almost exhausted for right now. Looks like we may have a long setup coming in a couple of hours. Right now scalping the M1/M5 back to the M15 is working pretty good.

NoLastBar V2..is there anyway to stop it from changing colors? I'll set the stoch color to red and the value of the stoch to yellow. When I close MT4 and then reopen it resets both colors back to yellow again.

Hi JD , latest version of NoLastBar is v3 http://www.forexfactory.com/attachme...hmentid=170254 where I added a little arrow that calculate difference between latest 2 bars displayed and show arrow accordingly , it could be of some help in case stoch is going quite flat to check whether is up or down.
Speaking about your issue I never experienced something like that , my color remains the same even if I close/reopen the platform.
Question : did you set color from properties StochColor in the input parameters ?

Hi,

A post to thank all people, spud, skyline, and all others, who are making this post usefull for learning stochastics.

You're welcome Marko but I think Spud deserve all the merit here !

Thx,

Yes thanks to master Spud for the quality of his work and the quality theses explanations !

Yes, but I think I may have found the problem it's overlaid on top of the other version.

**Edit: Nope that wasn't the problem. I'll just keep working at it.

I spent a lot of time today on trying to determine the best way to maximize your trading efficiency and explain what I'm about to explain in the clearest most concise way.

Let us pretend for a moment that you never heard of the Rope and Thread Theory because I want to present it with a different perspective based on PMTFS and hopefully to use it to make your trading much more successful. I wouldn't invest the time if I didn't think this important and at first it may seem very confusing but I promise it will make your trading much better.

As a person who likes names, I've decide to call this modification SONIC PMTFS. SONIC is our 25 Stochastic Line Indicator, PMTFS is our M1,M5,M15,M30 (H1,H4,Daily) Stochastics. I'm calling it this because it will be much easier for me to write and refer to what I am talking about.

There is nothing new here, everything is based on everything I've always talked about. What I am doing is melding different perspectives of MTF Stochastics into a single chart. This is simply a modificatin to help you visualize what is going on in the markets and how we can take away the uncertainty in your trades.

Below is a layout of my charts and how I will refer to them.
Price Indicator is simply M5 Price in candlesticks.
Sonic Indicator is our 25 Stochastic Line Indicator with a 0 to 100% range
PMTFS is our individual time frames %K Stochastics, I'm only using M1,M5,M15 and M30 for now.

I want to talk first about the Sonic Indicator because it has many special features built in. The 100,3,3 purple line is a very important tool. It represents our price scaled from 0% to 100%. When price is near 0% or 100% it is at its limit. Price will never go higher above 100% and never lower below 0%. Before price can go higher after reaching 100% it must drop first...for price to go lower after reaching 0% it must climb first.

You will also recall that price retracements and moves like to follow Fibonacci. Our 0 to 100% price scale is also a natural Fibonacci indicator. We actually need to add the 76.4% level on our Fib scale to make it universal up and down. I've added level lines on the Sonic Indicator at 23.6, 38.2, 50, 61.8 and 76.4 so you want to see the Fib in action. You can see clearly how before the steep price climb our price line hit the 50% Fib level and that our black (14,3,3) Origin Line hit the 23.6% Fib....ahhh very interesting isn't it.

The "Origin Line" is our 14,3,3 Stochastic. It is the "original", typical Stochastic line setting. More over you will see this Origin Line be the origin of many types of trades...it does so much it is impossible to explain in a few lines.

The blue lines are the 6,1,1; 7,1,1; 8,1,1 to 13,1,1 %K Stochastics. I call these the "Index Channel" because they lead every trade and provide us with our selection of trades to make based on their position. They work together as a group.

The red lines are the 15,1,1 to 24,1,1 %K Stochastics and they represent the "Slow Channel". These work together as a group also. These lines keep our Index Channel honest. In other words, our Index Channel may move away from our Slow Channel but always our Index Channel will return to our Slow Channel.

The Sonic Indicator is a "live" indicator. It is much easier to read live than static like this. You look at the chart below and your mind goes numb. You can trade the Sonic Indicator at any time, in open candles or at closed candles. We can use the Sonic indicator statically at the close of every candle as well...this is how we analyze it and many of the rules I tell you are derived. However, you will see that when it is moving live and with some practice it gives you plenty of signal of what is going on. Think of it like this, our candle price is moving up and down and as the price moves our Sonic indicator changes....we get a picture of what it will look at when the price is here....or what it will look like when the price is there before the candle closes....it is like seeing all the alternatives the candle presents us so we can make much better decisions.

You know PMTFS and believe me with the Sonic Indicator it will be much easier to figure out when to trade and where you are in a trade.

I promised a few post back I wouldn't get wordy on the theory....and here is more theory behind how this all works. So, that's it! I'm done with wordy theory. Now we'll get rolling visually.

Thanks Spud I'm all eyes!

Same chart but let's look at it as a trade.

Start with the PMTFS Indicators....
M1 hit 90 and crossed down below M5
M5 Short Trigger is hit (but not validated by M15)
M5 is above M15, M15 is above M30
For M30 to rise, M1,M5 and M15 must fall.

Now the Sonic Indicator.....
The vertical red line is where our PMTFS Indicators are.
Our Index and Slow Channel has converged and hit 100% about 5 mins earlier
Our Price is at 92% and is past the peak made by our Index and Slow Channels
Our Index and Slow Channels have crossed DOWN past the Price and Origin Lines
There is separation in order from top down Price, Origin and Channels

This is a SHORT entry.

Sweet, love the concept of having it all wrapped up onto one screen. Can't wait to see more and get it into action. Is it possible to get the template please?

Thanks again for all of the great stuff you post here at FF!

J

Our Origin Line has hit the first Fib line.....

M1 is below 10
M5 has crossed down below M15
M5 Short Trigger is still not valid
Our Sonic Indicator Price, Origin and Channels still maintain separation and proper order.
Our Index Channels are leading down.

Stay SHORT.

Added template to post #749

Thank you, thank you!

Price Line hits first Fib
Origin Line hits second Fib

Look where M1 is...below 10 again....see a pattern Fibs hit to M1 < 10 kinda interesting isn't it?

M5 still pointed down
M15 crossed 80 down (escalator start ?)

Sonic Index Channel down and converging at 10..leading the down..we expect the Index Channel (blue) to want to bounce up soon to our Slow Channel (red)
Price Line, Origin Line Channel Line still in down trend order.

Stay Short...hoping for oversold market.

Price Line hits 2nd Fib
Origin Line hits 5th Fib

M1 is climbing and crossed up past M5
M5 has crossed 20, we are not in an oversold market here
M15 is still headed down

Index Channel has bounced up starting to touch Slow Channel
Slow Channel has climbed over Origin Line
Origin Line is still below Price Line

Options:
Wait for M1 to climb to top and see how M5 responds
See if Index Channel bounces down from Origin Line or crosses up
Exit Short

We have only warning signs that our Short may be near exhaustion here. A cautious move is to exit. We've made 15 PIPS, our Origin is getting pretty low, M1 is going to climb...we are likely just going to reduce our 15 PIPS if we stay in.
M5 could go oversold and M1 could climb and fall bringing M15 down. We have 15 PIPS to play with to see if we can make more. Move the S/L to breakeven and let's see what happens.

M1 is over 90 and M5 has moved up, this kills our oversold market.
Our channels are moving up on the Sonic Indicator and an upward spread is forming between the channels and the Origin Line.
Price Line is flat on 61.8 Fib

We have 15 PIPS in hand, time to exit. M1 can go over bought and draw up M5. Our Short is no longer supported. We don't have a valid Long M5 trigger , but this is too risky with only 15 PIPs in our pocket to ride.

Exit.

Hi Spud,

What do you think, is there a possible escalator long building right now as I type this?

Here's a tricky one.

M1 has peaked below 10 and is climbing (above 20)
M5 has peaked below 10 and is climbing (above 20)

Sonic Indicator Channels are converged together and have climbed past Origin Line. (we would only take this as a long signal with our PMTFS supporting a long).
Origin Line hit 23.6 FIB again. Be nicer if Price line hit 50 Fib..darn close.

We know convergence of channels on Sonic indicator will pull price up. We are past the bottom peak of the convergence. Dangers are that Price Line and Origin Line are headed down still. However, we can ride at least M1 up and probably M5 up some degree. Our risk to lose pips is low, enter Long or wait for next candle.