Craig Harris Stochastics Method | Page 61 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Stochastics Settings 12 replies

bo7a method... method for GBP/JPY 205 replies

Stochastics 3 replies

Math question: equating hourly stochastics/rsi with daily 3 replies

Slow Stochastics Indicator 1 reply

Attachments: Craig Harris Stochastics Method
Exit Attachments

Craig Harris Stochastics Method

  • #1,201
  • Edited Feb 25, 2010 2:55am Feb 24, 2010 9:33pm | Edited Feb 25, 2010 2:55am
OK, just finished the new CH template. Hope you enjoy it. Be sure to install the indicators into your indicator folder before running it so that it sets up properly. The M1 TF has a set of instructions to help guide you through how to tweak and edit the template to your liking. I included a text file in the archive to help walk anyone through the installation process if you are not familiar how to.

There are 2 PDFs in this bundle; the first one is the updated PDF from this thread, with the rules of the system as well as the best counsel and tidbits from you all. The 2nd is the 80 page manual that was posted by Craig Harris yesterday during his webinar. It's a manual that one of his students created, though I'm not sure how helpful it will be.

We have the best mentor-ship right here on this thread!

Below is a screen shot of what the template should look like when properly loaded.

Enjoy,
NeoRio

(Big E, would you be so kind as to put a copy of this zip archive in the first post of the thread?--thanks!)
Attached Image (click to enlarge)
Click to Enlarge Name: ch_template.gif Size: 30 KB
Attached File(s)
File Type: zip CH Instuctions & Template.zip   768 KB | 1,188 downloads
Sentiment: Short on cash. Long on hope.
  • #1,202
  • Edited 11:19pm Feb 24, 2010 10:03pm | Edited 11:19pm
Thanks Neo. I was working on the SMAs earlier. I didn't have mine correctly adjusted to remain the same between timeframes as your template instructs. Will be using your setup instead of mine. Had my Tokyo Channel setup off a little bit too; this seems to have it at the correct 7 hours now.
I'm still unsure about the TDI indicator. You didn't make that part of your setup?
  • #1,203
  • Feb 25, 2010 1:12am Feb 25, 2010 1:12am
Quoting agent6488
Thanks Neo. I'm still unsure about the TDI indicator. You didn't make that part of your setup?
No, because it's not part of the CH method and this template is trying to copy his as close as it is. The TDI does not go into OS and OB the same way Stochastic does to give entry signals. Big E uses TDI to help him ride the swings longer and stay in longer.
Sentiment: Short on cash. Long on hope.
  • #1,204
  • Edited 2:58am Feb 25, 2010 2:55am | Edited 2:58am
Quoting bythepound
Hi Neo, I see that you were in the Craig Harris webinar. I asked him the question of whether or not BB are useful with the CH method and he said a big no. I know that you use BB (as seen in many of your posts). Following what Craig said last night - what are your thoughts on their use? Since one of the MA he uses is a 20 SMA, then why not use a BB set to 20 for the pure fact that you have a high/low target? Thanks
One must take into account that CH is selling HIS system and does not want any added indicators. So, for the moment they are bad.

One must also take into account that if an indicator helps one to trade any system, then that is a good indicator no matter what others say.
Hlass, uses it to good effect. Boris Schlossburg(sp) seems to use nothing else.

This system is basically a Price Action, five bar reversal system and that IMO should be sufficient. CH does say that if one just took them, one would make a profit.

You pays your money and takes your choice.

Kolin

Excellent work NeoRio, by the way!
  • #1,205
  • Feb 25, 2010 2:56am Feb 25, 2010 2:56am
Great template...appreciate all your work.
  • #1,206
  • Feb 25, 2010 3:49am Feb 25, 2010 3:49am
The template I made was simply meant to mimic CH's template and the indicators he uses as closely as possible. If you want to change things around, or add your favorite indicators to it, please feel free to.

This thread has had many helpful insights into other trader's styles, indicators and preferences. I have had the privilege of getting some insight into a couple other trader's methods of trading right here on this thread--and though they are as different as night is from day and take completely different routes, they all lead to consistent profitable trading.

Like a friend and mentor of mine always says; it's what's between the ears that makes the difference between someone who trades well and someone who doesn't.
Sentiment: Short on cash. Long on hope.
  • #1,207
  • Feb 25, 2010 5:44am Feb 25, 2010 5:44am
I forgot to share the only *new* nugget (that I heard at least) from Craig's last webinar. I put this in the PDF I sent posted today, but for those who won't get around to reading the PDF, here it is:

What direction should you trade in?—if the pair you are trading (i.e. the GU) has a daily average range of 150 pips a day—once the market makes 70 pips or more in a day—USUALLY, that is the direction the market will move for the rest of the 80 or 90 pips…the same direction as those first 70 pips.
Sentiment: Short on cash. Long on hope.
  • #1,208
  • Feb 25, 2010 6:14am Feb 25, 2010 6:14am
nice template Neo - thank you very much.

All the best.

Nick
  • #1,209
  • Feb 25, 2010 7:55am Feb 25, 2010 7:55am
Thanks for the template and indies - they are very nice on the eyes - nice colors.
Without vision, the people will perish.
  • #1,210
  • Feb 25, 2010 8:38am Feb 25, 2010 8:38am
Hi Neorio, template looks great....thanks for all your hard work.
At work at the moment so will d/load when I get home later.
I also have some statistics concerning the GBP/USD from a spreadsheet the group may find interesting.
  • #1,211
  • Feb 25, 2010 10:12am Feb 25, 2010 10:12am
Hi all haven't posted in awhile as I was doing some testing on some other set ups. Today I took two positions one long and one short.

Both were CH method and I put a hard take profit of +20 and both were hit. Ended the day with +40...
Attached Image (click to enlarge)
Click to Enlarge Name: thurs ny.gif Size: 15 KB
  • #1,212
  • Feb 25, 2010 11:00am Feb 25, 2010 11:00am
Hi Chewz,

I reviewed your trades and marked them in yellow on the attached chart. This is just MY observation, so other observers, please feel free to comment.

CHEWZ Chart in grey from POST #1198

CH is clear about what a reversal pattern is:

Assuming you were looking for a SHORT (reverse these rules if looking for longs):

Price makes a high with a green candle (usually with a wick on top), then the next candle opens with a “different color” (red in this case) and lower than the previous high. You then take the entry on the next red candle after the break of the reversal candle’s low point. I like my swing high candle to be green, the reversal candle to be red, then enter on the third candle at the break of the low of the reversal candle.

See example.

There are other good entry signals/reversal patterns in this example, but these ones are easy to spot if you are just starting out. Study the charts for while and these will become more clear. It was hard for me at first. There are actually a few other entries I would consider in this shot, but for now I will not post them.

These trades are from the 2/22 – EURO/USD – London/US session

Entry 1 taken at 10:15 am PST
Entry 2 Taken at 4:45 am PST
Entry 3 taken at 5:30 am PST

Be sure to give your trade room to move, this means you should make your stop loss 25-30 on the EURO/USD and 30-35 on the GBP/USD. Many of the trades I have taken so far on this method went 15-20 pips, or more against me, before giving my TP. Prior to expanding my stop loss limits, I was always stopped out it seemed.

Line 1: I do not see a clear swing low prior to your entry. You were in a period of consolidation. However, it looks like this trade should have worked assuming you were long.

Line2: The entry candle where you entered only broke the reversal candle by one pip, not a good confirmation that this trade was going short. You also took the trade 30 minutes prior to news it appears, which is against CH rules.

Line 3: News

Line 4: No clear swing low prior to your entry, except for the doji that occurred at the red x on the chart. However, long legged neutral dogi candles are a medium reliability reversal indication. If you had considered the doji as the swing low, then your entry long should be at 3:15 PST noted by the yellow dotted line – this should have given you pips.

Line 5: No entry seen here.

Line 6: Good entry and should have given you pips.

Line 7: No trade here. The high established at 5:15 am PST and the next candle at 5:30 am made the same high. No clear reversal here. It was consolidation.

Line 8: I see no trade here especially if you were going long. Your stoch was way OB.

I know CH preaches that you should see 20 pips per trade, but I feel that 15 pips is more reasonable most of the time, or even 10.

Also, while against the teaching of CH, one might consider timing the entries using a 5 minute chart. Just look through the highs/lows on a 15 minute chart, and then look at those same areas on a 5 minute chart. You can often get better entries. However, be sure to lower your TP expectations to say, 10-15 pips. This method really helps picking entries post news as well.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 2.jpg Size: 158 KB
Click to Enlarge Name: 1.jpg Size: 142 KB
Click to Enlarge Name: help.gif Size: 28 KB
Click to Enlarge Name: 4.jpg Size: 156 KB
Without vision, the people will perish.
  • #1,213
  • Feb 25, 2010 11:00am Feb 25, 2010 11:00am
Quoting bpips
Hi all haven't posted in awhile as I was doing some testing on some other set ups. Today I took two positions one long and one short.

Both were CH method and I put a hard take profit of +20 and both were hit. Ended the day with +40...
3 cheers......hip hip,hooray!
  • #1,214
  • Edited 1:40pm Feb 25, 2010 1:33pm | Edited 1:40pm
Hi everyone,

Made a few trades today, its all based on bollinger bands and support and resistance just in case anyone is interested. The first yellow box on audnzd trade should be a little higher obviously up by my sell line, but for some reason it doesnt want to work with me today, either way, both entries on this trade and on usdzar trades were just pure bounce trades off of bollinger bands. Also, look at the wicks on the audnzd trade up top, very clear reason to short.

Huge trade on usdzar and pretty nice trade with add on on the audnzd, any questions just ask.
hlass
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 680 and 580 usdzar.gif Size: 22 KB
Click to Enlarge Name: 90 and 65 on audnzd.gif Size: 23 KB
  • #1,215
  • Feb 25, 2010 2:13pm Feb 25, 2010 2:13pm
Hi bythepound

Sorry I think I have confused you a little. The red lines are where I actually bought or sold on (not the reversal candles). I'll explain a little further for each line.

line 1: I took the trade here, because two candles before it, we had the first green reversal candle. Entry would of normally been on the next candle (after it broke price of reversal candle) but since stochs didn't show a correct 1-2 o clock angle, I waited until the start of next candle, when stochs did agree.

line 2: This was a sell trade. The previous candle was the reversal candle, I entered on the break of it. I realise it was a big candle and shouldn't of been traded. But looking at it from a CH point of view, his basic simple rules i took it.

line 3: I diddn't look at thew news :S

line 4: I took it even though it was a doji. Should really ignore them!

line 5: Remember, my red lines show the actual candle I took the trade on. Previous candle was the RC, price broke on the next and I took the trade. Didn't quite make the 20 t/p.

line 6: Agree, but probably should be involving the break through the MA (again just sticking to CH simple/free tips)

line 7: Yeah didn't take the into consideration - thanks.

line 8: I count seven! (sorry your images didn't load for awhile!)

I have decided I need to start using the MA to filter out allot of crap from now also. Thanks for your insight, has helped.
  • #1,216
  • Feb 25, 2010 3:31pm Feb 25, 2010 3:31pm
Quoting HLass
Hi everyone,

Made a few trades today, its all based on bollinger bands and support and resistance just in case anyone is interested. The first yellow box on audnzd trade should be a little higher obviously up by my sell line, but for some reason it doesnt want to work with me today, either way, both entries on this trade and on usdzar trades were just pure bounce trades off of bollinger bands. Also, look at the wicks on the audnzd trade up top, very clear reason to short.

Huge trade on usdzar and pretty nice trade with add on on the audnzd,...
HLass...Thank you for coming back by the forum. I was worried we had not heard anything else from you. I was very much looking forward to learning from you about BB and Price Action. Anyone who has followed C.H. knows he continually states he is a Price Action trader. I for one want to learn all I can about how to read Price Action.

Anyhow, thank you for stopping back by and I hope your dog is doing better. My puppy is losing his jewels tomorrow and the vet promises him good pain killers.
  • #1,217
  • Feb 25, 2010 4:42pm Feb 25, 2010 4:42pm
Quoting jrwaters67
HLass...Thank you for coming back by the forum. I was worried we had not heard anything else from you. I was very much looking forward to learning from you about BB and Price Action. Anyone who has followed C.H. knows he continually states he is a Price Action trader. I for one want to learn all I can about how to read Price Action.

Anyhow, thank you for stopping back by and I hope your dog is doing better. My puppy is losing his jewels tomorrow and the vet promises him good pain killers.
Thanks for the comments, I have had quite a few people this week asking for my input and I feel bad that my schedule is just so over the top as I have a lot of crap going on at the moment, and Ive been sick as well, but I am not a quiter and like to help fellow traders, so I will try as much as possible to help or at least post some trades and explanations, if I can find time in the future, I will try to put together a little explanation about bollinger bands only for the people interested as I do not want to interupt the threads main purpose, which is to teach the CH method, as that is what this thread was started by Big E for in the first place.

Thanks for the comments on the dog, yes he is doing much better, he is getting on in years, really sucks that mans' best friend dont live a bit longer like maybe 20-30 years lol sorry to hear about your dog and his jewelry loss tomorrow, take care, good trading.
hlass
  • #1,218
  • Feb 25, 2010 6:17pm Feb 25, 2010 6:17pm
Hi guy's,

Hope you are all trading well.
I ain't done a trade all week...won't bore you all with the details.

Anyway I have some statistics for you all concerning the GBP/USD wether you are interested or not...I don't know, but some folks out there may find them useful.

Now I don't claim these statistics to be my discovery as they ain't.
I merely copy and pasted various little nuggets of info from a thread on this forum into a word doc to keep them to hand.

I will not discuss the thread here as it may detract from the trading method we are discussing here.

There was also a spreadsheet associated with the trading method where these figures were discovered, some of you folks may have the spreadsheet or you may even have your own spreadsheet following your own pairs.
I just want to share this information as I found it to be a very good insight as to how the GBP/USD generally behave.

So here goes :-

(poster 1)
It’s very clear from the data that you can make the following conclusions:
A) Excluding pre-holiday trading, the range for the day has a 90% + probability of being 100 pips, about a 70% probability of being 120 pips, and about a 50% probability of being 135 pips.
B) There is approximately a 75% probability that once the market moves farther than about 45 pips from the open, it isn’t coming back.
C) There is a 50% probability that when the market goes past 30 pips from the open it isn’t coming back.

Knowing this will prevent you from trying to pick tops and bottoms and getting hurt. For example, GBP/USD is at the upper fib levels and I am watching it closely. The market opens and starts to go higher still. If it passes 30 and then 47 pips from the open, trying to sell it has a good chance [75%] of leading to a loss. And it doesn’t stop there because it still has a range to put in, and if you’re stubbornly short, your loss is going to get worse. Any bets you cover near the high?




(poster 2)
In the past 518 days trading, the range :
1, 2 days hit below 55 pips;
2, 48 days hit between 55 to 89 pips;
3, 211 days ...............89 to 144 pips;
4, 193 days ...............144 to 233 pips;
5, 64 days .................233 to 377 pips;

no single one days below 50 pips or above 377 pips. 78% of the time the range hit between 89 to 233 pips. 21% of the time hit blow 89 or above 233 pips.

Is there any magic number we can take to our trading ?



The above statements were taken from two different posters, just for your info.

Hopefully you may have found these little statistics useful.


Cheers

Harmudge
  • #1,219
  • Feb 25, 2010 7:06pm Feb 25, 2010 7:06pm
Thanks for the template. I also added the pipware dashboard and TDI . Works great.
KYSS - KEEP YOU SCREEN SIMPLE - GO WITH THE HEARD - TREND IS YOUR FRIEND
  • #1,220
  • Feb 25, 2010 8:44pm Feb 25, 2010 8:44pm
Quoting carlen68
I also added the pipware dashboard.
What's the pipware dashboard?
Sentiment: Short on cash. Long on hope.
1 trader viewing now