I'm practicing with the strategy. Is this a good setup?
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- #242
- Apr 8, 2007 6:40pm Apr 8, 2007 6:40pm
- Joined Jan 2007 | Status: MTF Stochastics and Volume/Price | 1,133 Posts
Hi Skyline,
Can you please add a pop-up and email alert to your indicator so I can
attach it to all currency? The rules are, send an alert when the 15M, 30M,
1HR and 4HR are all in overbought or oversold territory.
Thanks!
Can you please add a pop-up and email alert to your indicator so I can
attach it to all currency? The rules are, send an alert when the 15M, 30M,
1HR and 4HR are all in overbought or oversold territory.
Thanks!
I'm reading with interest this journal and what to thank SpudFyre for his great ability to teach difficult insight in a really simple way easily to understand. I hope that he will continue to stay here for a long time to help us to improve our trading
Moreover I'd like to give my little contribute here, sharing this cool Stochastic indicator that give a whole overview about all different stoch timeframe in a single window , hope you like it
Cya,
Skyline
- #245
- Apr 9, 2007 2:34am Apr 9, 2007 2:34am
- Joined Apr 2006 | Status: Metatrader Programmer | 1,422 Posts
Hi Skyline,
Can you please add a pop-up and email alert to your indicator so I can
attach it to all currency? The rules are, send an alert when the 15M, 30M,
1HR and 4HR are all in overbought or oversold territory.
Thanks!
- #246
- Apr 9, 2007 3:51am Apr 9, 2007 3:51am
- Joined Jan 2007 | Status: MTF Stochastics and Volume/Price | 1,133 Posts
- #247
- Apr 9, 2007 5:05am Apr 9, 2007 5:05am
- Joined Feb 2007 | Status: Stock Broker, October 1987 | 1,281 Posts
- #248
- Apr 9, 2007 5:44am Apr 9, 2007 5:44am
- Joined Jan 2007 | Status: Trader | 5,864 Posts
Everything you say is absolutely correct about trends. This is why I say that we use the 4H to look for our trade to start. We want to enter in a strong trend.
However, what happens to the next candle of the 4H is soley based on what the 15M/30M/1H movements do. The 4H will not dictate how the lower time frames are going to move next. The big boys don't trade simultaneously.
The 4H is a constant zig zag on it's way down and up and few small traders can ride the highs and lows from bottom to top.
So, what we are trying to do is enter on the 4H strong trend. Then we want to ride that trend and be "safe" doing it so we win.
With the other time frames in sync we can progress down the line 15-30-1H growing into the strong trend or from my point of view continuing to build the trend.......but we also know that as we move down the line the shorter time frames will be reversing within the 4H trend as the stochastic expires and turns at the peak of it's current cycle.
So what we want to avoid is riding a 1H reversal move that wipes out all our pip profit or takes us into a loss....which we are in far greater risk of when the short frames are moving against the long term trend. Again it is the short term that will be affected by the short term moves...not the long trend.
As such, we know that if we went long in the 4H and the 15/30/1H all go long then we are pretty well assurred of making pips.
If on the other hand all the time frames reverse...that reversal is not going to start at the 4H...it will start at the 15M and then progress to the 30M and then the 1H...eventually showing it's ugly side on the 4H. Keep in context I am working within our trade.
Because the 15 candles deals with small day traders 1% of the market maybe
& the 4 hour deals with big treader -25% market maybe
& the big traders never look @ 15 candles they could care less
they are like lions & we mice" ..
the lions never look to the mice...too small
but believe me the mice look to the loins.
if you are using the 4 hour chart for trend you need a cover chart above it
the day chart (75% of the market or more)
the 4 hour chart can not turn till the day traders have taken proffit not the 15 min traders.
the market always moves from top down because the top is where the money is
- the day chart is the banks & countries & as long as they are pushing a pair one way
it must go that way.
the fund traders on the 4 hour chart can not move the trend in the opp way
(they can push it a 10-20 pips for stop hunting & maybe maybe 40-50 pips for option)
but in the end it must come back to the day trend - till the really big boys want it to change & that can only happen after they have made proffit & got out... (you see them get out with what I call really big tails ) & they do that through the news events esp interest Rate news events.
15 min chart & the 4 hour chart are diff worlds
the 4 hour chart world does effect 15 min world a great deal
But the 15 min charts world does not effect the 4 hour chart world at all
let alone the day world chart.
all 3 are in differant worlds.
& that is why it might be good to want to see what the 3 worlds are doing.
the bankers - the funds - & the day traders
just a thought - got to go
- #249
- Apr 9, 2007 6:00am Apr 9, 2007 6:00am
- Joined Feb 2007 | Status: Stock Broker, October 1987 | 1,281 Posts
- the day chart is the banks & countries & as long as they are pushing a pair one way
it must go that way.
However, I think all that Spud is saying, as I understand it, is that the daily chart isn't going anywhere the 4H didn't go. Smaller, short term moves add up to bigger, long term moves. Short term moves are easier to see on short term charts.
We want to trade off the longer term, but we don't want short-term whipsaws to take our profits.
- #250
- Apr 9, 2007 6:09am Apr 9, 2007 6:09am
- Joined Feb 2007 | Status: Stock Broker, October 1987 | 1,281 Posts
- #251
- Apr 9, 2007 6:29am Apr 9, 2007 6:29am
- Joined Jan 2007 | Status: MTF Stochastics and Volume/Price | 1,133 Posts
- #252
- Apr 9, 2007 6:43am Apr 9, 2007 6:43am
- Joined Jan 2007 | Status: Trader | 5,864 Posts
TEB, your whole post is great info, makes sense.
However, I think all that Spud is saying, as I understand it, is that the daily chart isn't going anywhere the 4H didn't go. Smaller, short term moves add up to bigger, long term moves. Short term moves are easier to see on short term charts.
We want to trade off the longer term, but we don't want short-term whipsaws to take our profits.
No its the reverse
the 4 hour chart is not going anywhere the day chart is not going
because the day chart shows the really big money
& the weekly the even bigger money etc.
The 4X always moves from the top down
believe me the big boys down lose money
& they are not surprised -
& they can only get out of a market slowly
you must understand that
this is the key.if they tried to dump millions or billions it would drop the price against them
and they would lose money
that is why they must use the big news events to get out of a pair
because that is the only time they can dump money
& not have it go against them..
ie the big tails
ie 9/11 the Dollar dropped...big time
for no reason really - that may surpise some people
but for the fact the 15 min & 30 min chart traders paniced
but the 4 hour traders where bussy buying
why because the day trend & the 4 hour trend where up
& you know they made money hand over fist
now the people following the 15 & 30 min charts lost big time!!
lastly
That is why on a smaller chart you get hit with the big D
because a small down turn on the day chart is a big down turn on the 4 hour
A great massive wave on the 15 min chart.
but if the day chart is up
you are pretty safe on the 15 min chart
because it takes a long time to get out of a billion dollar account
& not price turn against you... and so lose money
TEB
No its the reverse
the 4 hour chart is not going anywhere the day chart is not going
because the day chart shows the really big money
& the weekly the even bigger money etc.
Thanks for sticking to your guns and trying to make your point well. I think there is no need to continue to thrash this one any longer.
For me the issue is this...Spudfyre has gone out of his way to explain how he trades the gbp/jpy using stochastics over multiple timeframes and he has called a number of live trades to prove that he is trading this method profitably. He has even made the extra effort to summarise the method in a word document and has made mention that he is very careful to watch the smaller time frames and any possible changes.
When all is told I am more interested in following a method that works and I will pay attention to what Spudfyre has written about the smaller time frames because I prefer not to learn the hard way and I sense that this method is simple and WORKS.
You make valid points regarding the longer time frames and it is obviously important to know what is happening at these levels. Let's move on and get back to the nitty gritty of Spudfyre's thread and learn to make profits like the author does.
- #256
- Apr 9, 2007 7:39am Apr 9, 2007 7:39am
- Joined Jan 2007 | Status: MTF Stochastics and Volume/Price | 1,133 Posts
- #257
- Apr 9, 2007 7:58am Apr 9, 2007 7:58am
- Joined Jan 2007 | Status: MTF Stochastics and Volume/Price | 1,133 Posts
- #259
- Apr 9, 2007 8:21am Apr 9, 2007 8:21am
- Joined Jan 2007 | Status: MTF Stochastics and Volume/Price | 1,133 Posts
