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Craig Harris Stochastics Method

  • #2,261
  • Aug 1, 2010 1:36am Aug 1, 2010 1:36am
Quoting cugir321
pay attention to the break of the 5 ma channel....I use a 5ma low and 5 ma high.
I suppose you are referring to a different trading strategy than the CH method? CH does not use the 5MA.

Best Regards
Sentiment: Short on cash. Long on hope.
  • #2,262
  • Edited 2:17am Aug 1, 2010 1:56am | Edited 2:17am
Quoting NeoRio
I suppose you are referring to a different trading strategy than the CH method? CH does not use the 5MA.

Best Regards
I've asked a few times if the channel is a 5 ma....no one ever answered. Maybe you can help.....is the channel on the TDI videos a 5ma high and low?

There's TDI stuff all over this thread. Am I missing something? I'm not here to step on anyone's system. I'm thankful for what I've got from this thread. It made me better.

P.S. I just read one of your posts referencing the TDI....you said, doesn't the stoch give a better indication over the TDI....on the chart above I'd say no. It looks to be at about a 2:30 angle yet this is a decent trade.
  • #2,263
  • Aug 1, 2010 2:09am Aug 1, 2010 2:09am
Quoting carlen68
Hello! Everyone, if you are interested in our skype room, please send a message to hawkeyefx. After I receive it, i will add you to the room. Now if you do not accept my invitation to the room, then you will not be able to get in. So make sure that you accept the contact invitation. Thanks, Hawkeyefx.

PS, Room usually gets going 15min before London Open, butit is open all day. Good Pippin.

Hi hawkeyefx, please add me to your skype room. Look forward to receiving your invitation. Thanks.

(carlen68 does not accept PM and hawkeyefx is not found in PM program.)
  • #2,264
  • Edited 7:51am Aug 1, 2010 7:34am | Edited 7:51am
As I understand it, the TDI indicator is used by some to gauge exits as it can help one to stay longer in a trade. Maybe some use it for other purposes? To each his own.

I think the channel you are talking about is part of the synergy system from which the TDI has benn taken. You can find more info about the channel on the compassfx site. It is not used in this system.

Quoting cugir321
I've asked a few times if the channel is a 5 ma....no one ever answered....
  • #2,265
  • Aug 1, 2010 7:50am Aug 1, 2010 7:50am
Hi
Quoting jdcool10
A couple of questions to any volunteer. Craig mentioned that his max stop loss was 35 pips. But in many instances, I have found that that by placing the stop below the swing high/low, it could be more than that. What do you guys do? Do you just pass on the trade or do you accomodate by reducing the size of your position (which is what I normally do in any trade, risking just 2% max of my account).
Maybe it helps to look at it from a risk/reward perspective. Are you going to risk 40 pips to make 20? That is what you have if you are expecting 30-60 pip swings. If on the other hand, the expected swings are larger then the R/R ratio is better and it makes more sense.

Yes, I would adjust the size of the position to give a preset risk level.
  • #2,266
  • Aug 1, 2010 1:34pm Aug 1, 2010 1:34pm
The channel you see is created by using two 5ma's. Both set to smoothed; one set to the hi, one set to the low of the bar.
  • #2,267
  • Aug 1, 2010 2:09pm Aug 1, 2010 2:09pm
Thanks!!!

Quoting Walsanshu
The channel you see is created by using two 5ma's. Both set to smoothed; one set to the hi, one set to the low of the bar.
  • #2,268
  • Aug 1, 2010 2:47pm Aug 1, 2010 2:47pm
Thanks to Neo, Cugir and Xaphod for your quick answer to my inquiry?
  • #2,269
  • Aug 1, 2010 4:43pm Aug 1, 2010 4:43pm
Quoting fxrich
Hi hawkeyefx, please add me to your skype room. Look forward to receiving your invitation. Thanks.

(carlen68 does not accept PM and hawkeyefx is not found in PM program.)
I need your skype name to add you to the room. Thanks, Hawkeye.
KYSS - KEEP YOU SCREEN SIMPLE - GO WITH THE HEARD - TREND IS YOUR FRIEND
  • #2,270
  • Aug 2, 2010 6:44am Aug 2, 2010 6:44am
Hello. I really enjoy this thread. Just wanted to know exactly what I need to do to get into the Skype trade room. Carlen68 (this room) has listed me as a contact on Skype. I can see when he is on Skype, but when the time gets near London session opening.... what do I need to do? Do I call?
  • #2,271
  • Aug 2, 2010 8:12am Aug 2, 2010 8:12am
First-time access to a Skype room ("group" in Skype-speak) can be both tricky and slow. The current version doesn't even officially support "rooms"... unlike the previous versions (here's to progress)... only "conversations" with multiple participants.

First, read up on how to use Skype in general and for IM (instant messaging, as opposed to VOIP calling) in particular:

http://www.skype.com/intl/en-us/support/user-guides/

Then follow this mini-guide.

1. Start Skype and click on "Contacts" tab.

2. Verify that HawkeyeFx is listed there. He will be if you have accepted his invitation and added him to your contacts, from the Skype IM he sent you. If he is not listed there, send him an IM request on Skype or post a request here at FF for carlen68.

3. Click on "Conversations" tab.

4. Click on that tiny "Show history" button, cleverly hidden at the bottom left of your Skype window.

5. You should see at least one conversation, with HawkeyeFx.

6. If that's the only conversation you see, keep that tab open and wait until another conversation, "M15 Swinger" pops up with an orange dot next to it. (In Windows, you'll also see a flashing taskbar / systray notification.) That should happen when a new IM is posted in the "M15 Swinger" group. That, in turn, may take anywhere from a few seconds or minutes during the early European session (5-7 GMT) and early London session (7-10 GMT) on weekdays, to several hours during the slow times of the day / week.

7. Double-click on M15 Swinger conversation (or highlight and press Enter) and you're in.

8. Click the down arrow of "More" button at the top, to add the group to your contacts for instant future access.
  • #2,272
  • Aug 2, 2010 9:00am Aug 2, 2010 9:00am
Thank you NHCT for you help. Can anyone tell me if the group got together this morning, and how well did it go today? Everyone have a blessed and profitable day.
  • #2,273
  • Aug 2, 2010 10:03am Aug 2, 2010 10:03am
Does any body have any idea why the pound is so strong against the dollar today? I looked it up and I could not find any info. There was only one valid short signal around 9:30EST which I took for a loss of 37 pips (entry at 1.5833 and stop loss at 1.5869). Am I the only one who saw that signal and did I trade properly? Thanks
  • #2,274
  • Aug 2, 2010 2:16pm Aug 2, 2010 2:16pm
Quoting jdcool10
Does any body have any idea why the pound is so strong against the dollar today? I looked it up and I could not find any info. There was only one valid short signal around 9:30EST which I took for a loss of 37 pips (entry at 1.5833 and stop loss at 1.5869). Am I the only one who saw that signal and did I trade properly? Thanks
Other than trading towards the moving average (which isn't necessarily wrong), I believe the trade is correct. However, you should have also taken the reversal at that point and made your lost pips back (and then some).
  • #2,275
  • Edited 5:53pm Aug 2, 2010 5:38pm | Edited 5:53pm
I believe it was the anticipation and knowledge that Ben Bernake was going to say the USA economy was still a mess....he said it in a nice way. You're trade was 45 min before he spoke. Just before and just after a Bernake speech is dangerous. You may want to check the calender on this site and stay out....about an hour before to an hour after.

Quoting jdcool10
Does any body have any idea why the pound is so strong against the dollar today? I looked it up and I could not find any info. There was only one valid short signal around 9:30EST which I took for a loss of 37 pips (entry at 1.5833 and stop loss at 1.5869). Am I the only one who saw that signal and did I trade properly? Thanks
  • #2,276
  • Aug 3, 2010 1:12am Aug 3, 2010 1:12am
Hi guys, took a short position yesterday on the GU two candles before London open and was taken out for a loss of 18 pips.

Another short at ten AM GMT (2 hours after LO) Resulted in a similar loss.

Both trades seemed to be text book trades.

I understand that they were both countertrend trades, any ideas?

Pedross
  • #2,277
  • Aug 3, 2010 7:08am Aug 3, 2010 7:08am
Quoting pedross
Hi guys, took a short position yesterday on the GU two candles before London open and was taken out for a loss of 18 pips.

Another short at ten AM GMT (2 hours after LO) Resulted in a similar loss.

Both trades seemed to be text book trades.

I understand that they were both countertrend trades, any ideas?

Pedross
Here are some ideas for you to consider.

1. Don't take CH trades on M15 after the European / Frankfurt open and before the LO, 5-7 GMT. That's a prime time for range trading and scalping, not trend trading. There are very few M15 swings developing during that time. Would you enjoy taking a leisurely stroll on a sunny day in a firing range?...

2. If you are going to trade (not CH M15) during that time, keep in mind that:

- attempts by market makers (the real ones at banks, not the familiar make-believe ones) to retest and expand the upper and lower bounds of the overnight range through 4-5 GMT (TC to TC+1) often play a recurring theme before the LO;

- such attempts should be expected, may be planned for in advance with pending orders and may be faded, subject to the next two caveats:

- don't take any trades at that time unless and until you have developed strong mental, chart-reading and execution skills on M5, not M15... different ball game altogether;

- don't take any trades at that time unless taking exits quickly, with little or no hesitation, both TP and SL, really fits your trading personality and mindset.

3. During the first 3 hours after LO, 7-10 GMT, do take recovery trades at, for example, double your standard size. Not in front of news, of course. That means immediately after execution, you put in an SL and a pending SAR recovery trade. It's an important part of this method, at least during that half-session.

4. For example, taking your first loss, was there anything that stopped you from entering SAR long GU at 1.5754 just after LO / 7 GMT yesterday, when you were stopped out? That trade (recovery for you), one of the better ones in this pair so far this week, has gone on for 130 pips, the equivalent of 260 pips at your 18-pip loss trade size. Notably yesterday, the last TP (1.5886) was pretty much stress-free, either time-based into LC or trailing just below the last closed hourly candle, two of the best exit techniques for the last TP for trade entries between 7-16 GMT. You won't get such a perfect TP every day, but each one offsets a bunch of ordinary losses.

5. Your second loss was probably taken, looking at the chart, at 9 am GMT (not 10 GMT...), 10 am BST, 2 hours after LO. Similarly, was there anything that prevented you from entering SAR long GU at 1.5814 just after 9:30 GMT, when you were stopped out?
  • #2,278
  • Aug 3, 2010 3:12pm Aug 3, 2010 3:12pm
Some really good advice there, NHCT. Thanks for sharing...I enjoyed reading that.

Neo
Sentiment: Short on cash. Long on hope.
  • #2,279
  • Aug 3, 2010 4:23pm Aug 3, 2010 4:23pm
Hi eelfranz

I have read your posts regarding the use of the TDI indicator with great interest. Having been a student of the Synergy System by Compass FX, I am fully aware of how to use the system which among other things uses the TDI as its primary indicator set.

If one uses the TDI in the manner that Compass FX suggest (as seen in the videos and their manual), AND you use a stochastic alignment to make a trade, the TDI is often late. For example, the stoch will often times be overbought or oversold when the TDI indicator says to enter the trade. For those not familiar with the TDI entry requirements: One goes long when the green crosses above red, green is above 50%, and green is above the yellow line.

Just so I get your rules correct, please confirm the following assumptions:

1. You are using the Synergy Heiken Ashi candles, but any candlestick will do.

2. You are looking for WHAT APPEARS to be a swing high or swing low, but not an actual CH reversal candle pattern. I assume this because a Heiken Ashi candle does not show these patterns.

3. You want to only enter on the second red (for short) or (green for long) Heiken Ashi candle to confirm a PA direction.

4. You require a stochastic alignment.

5. You are taking an entry suggested by the stochastic only if the TDI green has crossed the red in the direction of the trade.

6. You are not taking an entry if either the stochastic or TDI are in their overbought or oversold levels. This is especially true of the red lines on the stochastic and TDI.

7. You are using the EMA set to 21, shift 3. But you use this for market direction, but you really don’t trade away from it as a requirement.

Questions:

1. Is there anything you use to help reduce false entries?

2. You talk about having a small stop loss. What are you doing when selecting an entry that suggests you can get away with a small stop?

3. Are you watching upper time frames to help with trend?

4. Are you taking entries on the open of the Heiken Ashi candle vs. the break of the previous candle?

I can back test the stochastic and TDI method until my eyes pop out and clearly see what happened in the past. Since all indicators tend to move and the paint a nice picture when looking at the past, I simply wanted to see what YOU see and how you proceed in a live situation.

I am only trading the 4 hour charts for now. If you have a specific checklist that you can post to the forum, that would be very helpful.

Thank for your help in advance!

Dan
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Without vision, the people will perish.
  • #2,280
  • Aug 3, 2010 6:06pm Aug 3, 2010 6:06pm
I bet my bank he's making a lot of money. I rarely hit my previous pivot SL with spread, PLUS 4.

The TDI is a great addition to price action. The CH stuff is wonderful.

I added a LagH and a super signal indicator. This give me the ability to take some of the red/green cross overs that are not in the correct position to the yellow line. I still use the stoch and reversal candles....sometimes things don't match perfectly They may cross a little off.....so what....they are close and it works.

Watch the Heiken ashi candles against some traditional ones. They are not off by much. I have two screens set up. I may use the regular ones if I feel the need. They both work. Take your pick.

Use it all.....the TDI gave me an edge the first day I used it.

Here's an example of the lagh indicator....notice the super signal indicator is saying go long. (The blue green asterisks with a verticle line over them) The lagh is following the stoch so I know it's coming back up....the red line over the histogram is a steady up. The TDI is not a perfect trade this time.....it's a long trade under the yellow, under the 50...so what. Common sense says go. Common sense paid off. I used the CH price action too. Use it all!!!

I love the CH stuff....I love the other indicators too. They add to it all.

I'll say it again...TDI is all over this thread. I learned it here!
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