Craig Harris Stochastics Method

PipTalk, If you watched the video on Oscillators you understand how he uses Stochastics for entries. Imagine the face of a clock on your chart indicator for Stochastics. If you have a line crossing up at a 12-2 PM angle its safe to enter normally. ***But: don't enter too late after it crosses and points up or down. (nothing is 100% all the time in forex). If the line all of a sudden points to the right at the 3 oclock angle, don't enter. Rules the same but opposite for the lines when going down (4-6 PM). Thanks... E

When Craig trades his swings he waits for the first reversal candle to close and then enters on the opening of the second candle. His goal is 20 + pips per Trade. (See the Numbers and Entry videos which shows you what he aims for.) He always trades with a stop loss. His stop loss is at the (top or bottom) of the 1st reversal candle. As he states on one of the videos... if it doesn't go a minimum of 20 pips and reverses on him... he will let the stop loss take him out. At that point if stochastic lines up with the next swing... he doubles his lot size and enters that next swing. He normally makes his loss back plus extra pips. If the second trade loses (which isn't often), he goes back to normal lot size on the next trade. 99.9% of the time he has a winning days with very, very, very few losing days using this method/secret. So his rule: If I lose a swing... I double up on my lot size for the next swing trade. Very Important!

Compass fx has some good videos on how to use the TDI along with other videos in there archives. This will help reinforce what Big E is trying to convey.

Here is a personal observation:

I noted when I went back on a chart and looked at the last swing... That if I waited to enter on the second candle after the reversal swing... that I was giving up about 20-30% of the pip's from that swing. I can feel the greed building now - help, help!

*** I Put my stop about 6-7 pips under/over the reversal candle and I enter on the initial reversal candle whether it's on my 5 min, 15 min or 60 min chart and it's successful most of the time. Why? Thank You Tokyo Channel. Because we wait to trade a pair until the Tokyo Channel spread is over 40 pip's... we get great Pip swings! Tokyo Channel is so Important. I always have an open Order on my desk top ready to enter.

Exits....

Craig will let the chart come back and take him out at his S/L if he doesn't get a 20 pip or more profit. That's his trading style. He then doubles his lot size on the next swing and normally wins more pips than he lost.

However I do it a little differently: Lets say I'm up 17 pip's and at that point it starts to reverse on me. I NEVER LET ANY TRADE REVERSE ON ME MORE THAN 5 PIP'S BEFORE EXITING. NEVER! Why? I avoid losing trades even if I make only a couple of pip's.

How do I gage that? On my 15 minute chart that this thread is teaching... your crosshair is about 5 pips. Use it to estimate quickly.
I don't want to give back any more pips to the market than it steals from me already.

When I enter the trade it's usually at market. I set the S/L and enter. Immediately I right click my active trade and select Close bringing up a Close Entry window box and I put it on the left side of my monitor window... resting my arrow on the Close button. If it suddenly reverses 5 pips I'm out.

A 15 minute chart trade will normally go 3-6 candles or more when you have a 40 pip spread on the Tokyo Channel... ***Hello, anyone listening?***

**** If I have a candle that is longer than 3/4 to 1 inch on my 24" Monitor... I'll will usually close the trade if it drops 5 pip's and enter another trade in the opposite direction. Look back on your chart at tall candles with long wicks after the trade has been going for a while (Ex. 5-8 candles) ... almost always a reversal area. Not recommending this for you but it works for me.

I don't trade the 1st candle when its news time and neither does he. E

Thanks PipCop... Compassfx.com has hundreds of free training videos for their Synergy System. It's free at www.compassfx.com . This is where I got the Heiken Ashi Charts by signing up for their Free Synergy System about 2+ years ago.(removing the yellow lines on their charts and only leaving the Heiken Ashi Candles) and the TDI (Traders Dynamic Index) Indicator.

This is a good place to get your FXDD free Demo Account (MetaTrader 4 platform) for following the upcoming thread posts. Big E

Hi Big E-- I am really enjoying this thread. Have watched Craig's video titled "Sessions". I download the indicators that you so generously provided, but did not find that one. How do we get that indicator? Thanks for what you are doing.

eelfranz,

Thanks for all your help I appreciate your help.

I watched all the videos and set-up the demo account on fxdd.

I'am not able to locate the session indicator tho? I downloaded
all of your indicators but can't seem to get them to work yet?

Anyway I'am with you so far...

Once again thanks for all your help!

snarlyjack

Personal Note:

When I trade the 5 minute chart I do so because I like faster action mainly. I put 100% of my attention on that low of a time frame. Forex trading requires ALL OF YOUR ATTENTION. No TV's on, kids playing in the same room or talking to people or them talking to you. I even turn my phones off (Vontage). If you let these things go on around you on a consistant basis it will cost you a lot of pips in the long run. Sometimes I play soft mellow low music in the background. Why that kind of music? If it's your favorite hip hop or other music you will soon catch yourself singing to the music which will take your attention off trading. I know this may sound foolish but it's true. I paid the price before I learned to avoid those things. It's your money.

Personal Note:

I spent 2 years STUDYING a couple of charts (E/U, G/U) before I got back into trading live again. About 6,000 hours worth. Part of the tuition you pay to play in this club forex.

I use to be the trader with 4-16 charts on my monitor looking for the next move. Most charts with spreads of 4-10 pip's. Unless your on a 1 hour or 4 hour chart your not usually going to make much money with a 8 or 10 pip spread on low timeframes.

While studing the way the charts breathe... mostly E/U and G/U, I discovered that on the 1 hour chart it "almost" always moved 2-3 candles or more before reversing. What did that mean to me? Swings are larger on the 1 Hour charts obviously... well just knowing that information it gave me an edge. We are always looking for an edge as traders.

I still trade them with a 6-7 pip S/L when they reverse. Maybe I get taken out a couple times because my timing was off a little bit... So what. I expect small losses and you should too.

The edge tells me it's gonna run normally 30-60 pips per candle and usually 2-3 candles minimum before it turns on me. Ex. 40 pip's average... times only two candles is 80 pip's partner... it's an edge.

And I can use Craigs system with it too... just check the ole chart once an hour about 10 minutes before the hour is up... until it's shouting at you... I'm gonna turn, I'm gonna turn... get ready... here it comes...

Learn to study new and old charts. They mostly move the same way when their getting ready to turn... get the edge... earn the pip's because you took the time to observe and learn...

Hi LawGirl and SnarlyJack,

Thanks for the question. That is one of the indicators he does not share. He spent over $5,000 on his custom indicators. He only makes them available to subscription students. We do not promote his business venture... only his highly successful trading points that he so kindly shared with the world via a webinar I spoke of earlier.

Come join us. Thanks, Big E

It's 5:30 PM Pacific Standard Time (-8 GMT) on Sunday and the G/U Tokyo Channel has already moved 48 Pip's ! See ya tomorrow...

Personal Note:

G/U - 3 Days last week - 1 HR Chart - London Open all 3
London Open 1 candle left of red vertical lines (3 opens)
20 pip Trailing Stop

While you slept you earned:
1st Day - 52 Pip's
2nd Day - 89 Pip's
3rd Day - 58 Pip's

See Below...

Chart

eelfranz,

Why does Craig Harris like the g/u better than the e/u?
I've always traded the e/u because the spread is tighter.

Also why the 15m chart? I've always traded the 1m or 5m.
The 15m chart is slow and boring.

But I'am also into making money so I'am open to ideas.

Thanks

snarlyjack

Theres the setup for EURUSDM15

As you could see, the pip range is over 40 and as stoch is my entry confirmation tool, i usually wait for it to crosses before entering.

On the chart posted here, I took long on the second candle formed after the Stoch crosses. My TP is 10 and S/L is 10. Actually the last bar shot up to 30+ pips. Too bad I didn't put trailing of 5p.
This entry also confirmed by lower TF (M5-M1) on which I also equipped with the Stoch.

Currently I am trying to get the Asian Session thing into my mind.

P/S: Still viewing the videos.

It's 8:30 p.m. PST and the market just went wild in opposite direction of my trades of course. I couldn't find any news. Anyone know what happened?

Not sure if it is related but this bit of news popped out at the exact same time the spike started on the 1 min chart.

Thanks, I guess that makes as much sense as anything. Did you survive the spike?

Check this:

http://online.wsj.com/article/SB1000...353375760.html

Abu Dhabi is giving US$ 10 billion to Dubai to help them repay bond obligations.

Snarlyjack,

Keeping focused on the topic of this thread... G/U 15 minute Observation and Craigs style is first. Not scalping.

For trading the 1 minute or 5 minute charts you need a very low spread like E/U. Put the Tokyo Indicator on your MetaTrader Platform. It only works on MT4 Platforms Check to make sure you have the suggested 40 pip spread. You will have great swings and earn more pips.

I only trade E/U and G/U. G/U runs a lot more pips per day than the E/U. Thats why Craig trades the G/U mostly. He doesn't scalp either.

Hope that helps. Big E