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Craig Harris Stochastics Method

  • #2,281
  • Aug 3, 2010 6:36pm Aug 3, 2010 6:36pm
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

Reply:

1. When using the HA Candles on the 15 minute chart you normally want to enter within the first 3 candles. If PA looks fishy I may not enter until the third candle to avoid a possible head fake. I usually enter on candle 1 or the beginning of #2... if TDI & Stocks line up.

2. At least half the time my SL is mental... after checking that there are no new announcements. If it pulls back 5-7 pips I normally get out and re-enter if there is a continuation. I'm not willing to lose 15-35 pips playing the odds that it might turn around. That's just my personal choice and not recommended according to CH. You can't do that when trading a 4 hour chart. If I'm away from my computer or shutting it down I always have a stop loss in place. If I'm up 30 pips on a 4 hour chart.. and I'm shutting it down I would consider putting the stop loss at break even + my spread.

3. No

4. Answered in #1.

I look for TDI & Stoch's to line up. On the 4 hour chart you can trust your indicators more than down on the lower time frames. Again... on the 4 hour chart... how many candles does it normally run on a reversal? If it's 3 or 4 candles... well on average I expect it to do that say 80% of the time. So if I enter on the 1st or second candle... I expect it to give me another couple of candles for profit. Just playin' the odds.

Send me a PM with your phone number and we will arrange a call.

Big E
  • #2,282
  • Aug 3, 2010 7:41pm Aug 3, 2010 7:41pm
Here's a classic TDI happening as I type.

Notice TDI is setup perfect. Under 50. It's running the pips down.

Something else.....the Goldminer indicator and nxmacd indicator are located on this site. IF you get heartburn trying to stay in during those long runs. Set them together. Notice when the run starts they match....when the gold miner turns red for a long or green for a short....get out. Done. Notice the peak up to the last run down. See the goldminer change to red....time to leave.
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  • #2,283
  • Aug 4, 2010 1:07am Aug 4, 2010 1:07am
Many thanks for your excellent reply nhct, much appreciated and taken on board! You were quite right in that there were no reasons why a SAR trade could not have been taken on either lost trade with TP results being quite profitable.

Your response however has created 3 questions. If you or other 15M Swinger contributors could help it would be greatly appreciated.
1) should SL be placed above/below Signal Candle or Fractal high/low? And regarding SAR,
2) if the SL is hit and we take an SAR, should the new trade be taken at the moment of loss or should we wait until the stoch angle is appropriate?
3) If so regarding stoch angle, do we place the trade at first sight of the correct angle(designated by stoch line colour change), or wait until the completion of the new candle?

I have watched the CH vids and will watch them again but there seems to be a lack of clarity on this issue.

Thanks again
Pedross
  • #2,284
  • Aug 4, 2010 5:16am Aug 4, 2010 5:16am
hi cigur21,

Can you share your color changing stochastic or where can i get it? Thanks
  • #2,285
  • Edited 6:08pm Aug 4, 2010 6:11am | Edited 6:08pm
http://www.forexfactory.com/showthre...118843&page=10

It's in with this guys stuff.....post #138 Color stochastics

SSSupdate#2 zip folder....down load and unzip

You'll have to change the "K" period under inputs, to 8 instead of 10.

The super signal indicator in the folder is nice too...with all other info....it's a nice indicator for tops and bottoms. It works with the color stochastics. The signal line is the indicator running thu my candles.

I like CH better then the "simple system"....

Love the SS indicators.

If your interested....Post 2280 on this thread shows a chart with the lagh indicator....I posted a link to the lagh here....search it....it will come up on this thread.
Watch where the lagh's are maxed . Both red and blue lines all up or all down. The red runs over the histogram. Now watch the TDI. Compare it to when the blue lagh starts to drop...first the blue then the red. Look at the TDI. Watch when it crosses the yellow line. This will show you where the long runs happen. This is one place I break the rule of waiting for the red green to cross under the 50 line. If you take the time to load the lagh and tdi you will be shocked! You can see it on the chart at post 2280 on page 152. This is a mild run compared to when both red and blue lagh's start to drop quickly.




Quoting jaychi
hi cigur21,

Can you share your color changing stochastic or where can i get it? Thanks
  • #2,286
  • Edited Aug 5, 2010 10:37am Aug 4, 2010 8:10pm | Edited Aug 5, 2010 10:37am
I just caught the last one for 20 pips.

Here's three setups that are above the 50 line on the tdi....the kicker is that the lagh indicator is maxed or dropping. The lagh blue line started dropping a while before the cross of the red/green on the first verticle line. The second is classic. The third is common.....the red lagh line is finishing up well over the zero line....the blue is maxed, starting down. The best setup I've found is when the Lagh indicator has the red line/histogram and blue line maxed.....along with the other TDI stoch stuff agreeing. It's weird but the bull run trades aren't setting up the same....sometimes they do sometimes they don't. I just look for a pegged lagh indicator and the other indicators matching. I'll take the easiest trade to identify. The setups are harder to spot when the red histogram/red line doesn't fall all the way to maxed down or up. This chart probably has to do with the fact that it is an uptrend overall and I am trading counter trends.

The TDI does work. I think it works best with the lagh indicator. You can take the trades that are slight to moderately above the 50 line. Each one is 10-20 pips after the spread.....and it's at 8:30pm eastern time - g/j

Another thing...I mentioned the goldminer indicator above. I watch the nxmacd and goldminer on the 5 min chart while trading the 15 min....you'll see the change quicker and get out.
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  • #2,287
  • Aug 4, 2010 8:34pm Aug 4, 2010 8:34pm
Quoting eelfranz
Good Morning All,

I received this private email last night.

Big E,

I am 44 years of age, January ill be 45, im just stating that because im still learning new things everyday in life, and didnt think I could learn new in forex, but watching these vids, ive sent you 2 emails and now I see you are going to close down this awesome thread due to a few idiots, I wish you would reconsider and maybe find a way to get more traffic...
I only recently ran across this thread . . .VERY glad I did! Thanks for starting it Big E . . . ! New to forex and excited about trading successfully. I have the FXDD demo and MT4 setup with the indicators from this great thread, time for some practice . . . . . . . . .
  • #2,288
  • Aug 4, 2010 9:14pm Aug 4, 2010 9:14pm
Quoting rahd01
I only recently ran across this thread . . .VERY glad I did!...time for some practice . . . . . . . . .
Glad to have you on board! I'm also glad this is the first trading method you have been introduced to...as it's very easy to understand and a great place to learn to trade! Be sure that in addition to the indies, you also watch the videos several times to get the gist of the system. Here are the videos.

Best Regards,
NeoRio
Sentiment: Short on cash. Long on hope.
  • #2,289
  • Aug 5, 2010 7:15am Aug 5, 2010 7:15am
rahd01.... I'm not closing the thread.

I'm shutting down any individuals who discuss the CH Business progam. We should be in the trading section... not Under Evaluation.

Welcome aboard. Big E
  • #2,290
  • Aug 5, 2010 9:18am Aug 5, 2010 9:18am
Quoting pedross
Many thanks for your excellent reply nhct, much appreciated and taken on board! You were quite right in that there were no reasons why a SAR trade could not have been taken on either lost trade with TP results being quite profitable. Your response however has created 3 questions. If you or other 15M Swinger contributors could help it would be greatly appreciated.
Sure, I can tell you what my preferences are.

Quote
1) should SL be placed above/below Signal Candle or Fractal high/low?
I prefer SL a few pips beyond the fractal high / low rather than the RC. I'd rather give up a few more pips less often.

Quote
And regarding SAR,
2) if the SL is hit and we take an SAR, should the new trade be taken at the moment of loss or should we wait until the stoch angle is appropriate?
Normally, I take SAR at the moment of loss -- even if the SS (a lagging indicator) angle is not perfect yet -- with both SL and SAR as pending orders, set in advance. In fact, on some not-MT4 platforms, e.g., Oanda and IB, your SAR (set at 3 times the size) can serve as both SL and reversal trade entry at double the size. The essence of this method is Price Action -- as in price breaking a key point such as RC, IB or OB -- with indicators distinctly secondary, playing supporting roles.

Quote
3) If so regarding stoch angle, do we place the trade at first sight of the correct angle(designated by stoch line colour change), or wait until the completion of the new candle?
No on both counts. In this method we never wait for a candle to close or an angle to change as an entry trigger, but for price to break a key point. Also, because of the repainting / "jumpy" nature of SS, using the SS angle as a entry trigger, rather than as a confirming indicator, would be asking for trouble.

When price breaks RC, IB or OB, out of a consolidation after a nice swing ("nice" in terms of both its size and timing, for a given pair), ideally we want to see SS already in agreement... to me that means both its angle and its cycle pattern. However, that will not always be the case. If the cycle pattern is giving a green light (for a short trade, having traveled all the way up to above 70/80 and turning or having turned) -- that's a must for me -- but the angle is not yet correct, is it OK then to anticipate SS angle? It is to me, but, again, that my preference... that's a decision you'll need to make as a trader. On the other hand, if the SS cycle pattern is suspect, that's a no trade for me... even a perfect angle does not overcome that veto.

Quote
I have watched the CH vids and will watch them again but there seems to be a lack of clarity on this issue.

Thanks again
Pedross
I think that's because CH doesn't go into any details about recovery techniques in his free videos.
  • #2,291
  • Edited 7:43pm Aug 5, 2010 7:16pm | Edited 7:43pm
Another example of TDI with CH....one 5 min chart, one 15 min chart. Same trade....yellow verticle line shows the start.

Notice the lagh indicator.....it tells me when it's ready to dump. They were maxed on a 136.32 entry. I made 17 pips. I didn't ride the retrace because the average drop was 20 pips. It went about 23 pips down.

Notice the Goldmine and the nxmacd. They say to stay in!!!! They match.

The goldmine is on the 5 min chart.....the lagh is on the 15 min chart.

The neat thing is that the stoch and lags are maxed up to the 30 min chart...check the higher time frames and make sure they agree....it's like a wave. When the 5 min hits bottom, the 15 min starts to drop, when the 15 min hits bottom, the 30 min starts to drop.

This is on G/J....Thank God for it during the asian session.

There's a super signal yellow arrow above the trade....they are great at showing tops.
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  • #2,292
  • Aug 6, 2010 1:00am Aug 6, 2010 1:00am
Many thanks for your help and time spent responding nhct, your insights have certainly helped to clarify some issues I've been struggling with. May the pips continue to flow...

Pedross
  • #2,293
  • Aug 6, 2010 4:46am Aug 6, 2010 4:46am
Hi BigE

I am a newbie to Forex. I found this website by searching on internet and I am very interested in your method.

I wonder if you could explain the process to download the templates and indicators to MT4 that NeoRio provided.

Thanks very much and looking forward to learning more from you.
Kulvadee
Quoting eelfranz

This is a new discussion group that will be discussing how Stochastics is used with a program created by Craig Harris. Many of you will be following from the Forum named Stochastic Secrets (Discussion Group) started by Red Trader. Great Forum and great participants.



[left][font=Comic Sans MS][color=#4169e1]I was fortunate enough to be invited by Compassfx.com to attend a webinar they recently offered. One of their key speakers was Craig Harris. He looks at the market differently...
  • #2,294
  • Aug 7, 2010 1:40am Aug 7, 2010 1:40am
Had a great week. I noticed something last week.

The few times I hit my SL it was related to entry. I went in on the break of the reversal candle. (standard candles). Price would drop to the 5 ma low and bounce off it....then run upward.

I now understand what Big E said about a very limited SL and losing more then a few pips on a bad entry. If it bounces off the 5ma low...you might as well just get out.

I noticed that the bull indicator crosses the zero line when the trade is good. It rarely comes close to crossing when the trade bounces and goes bad.

Here's an example chart. The bulls indicator is at the bottom of the chart. Notice how it crosses the zero line around entry. The verticle yellow line is the entry.
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  • #2,295
  • Aug 7, 2010 11:46am Aug 7, 2010 11:46am
If you look at the chart above. The NXmacd and the gold miner indicators are essentially an even more refined version of the heiken ashi. They cut out the oscillation noise even more...

Why not have traditional candles with the two very small indicators at the bottom of the chart? It is extra info since the traditional candles sometimes show the reversal just a little bit sooner.

I'm going to change my chart starting Sunday.
  • #2,296
  • Aug 8, 2010 1:43pm Aug 8, 2010 1:43pm
NeoRio... Help the gentlemen out on post 2293 wanting info on your indicators and templates please.

Cugir... Use what works for you... I prefer cleaner charts and fewer indicators. I'm glad your making pips. Thanks for sharing.

Big E
  • #2,297
  • Edited 11:46pm Aug 8, 2010 5:11pm | Edited 11:46pm
I like clean too....but, it's working so I got to do what works. I do appreciate all your posts. My pip count has definately gone up from them.

I've been trading tonight....slow night. Two trades, up both....a few pips. That goldminer indicator is worth it's weight in....yep, gold! The nxmacd and goldminer have kept me out of a few bad trades. Seems like the goldminer changes color just around the time I'm ready to enter.....sure enough, a retrace starts. It's good at keeping me out of the start of convergence type stuff....before you can really see it.

Quoting eelfranz
NeoRio... Help the gentlemen out on post 2293 wanting info on your indicators and templates please.

[font=Comic Sans MS][size=3][color=#0000ff]Cugir......
  • #2,298
  • Aug 8, 2010 8:17pm Aug 8, 2010 8:17pm

  1. Download and unzip the indicators in post 1840. Click on the file or right click and select 'save as' to download.
  2. Install indicators and template as described in this video:
    Inserted Video


Work through a MT4 Tutorial if needed. You can find one here:
http://www.alpari.co.uk/en/alpari_ac...tutorials.html

Quoting kulvadee
Hi BigE

I am a newbie to Forex. I found this website by searching on internet and I am very interested in your method.

I wonder if you could explain the process to download the templates and indicators to MT4 that NeoRio provided.

Thanks very much and looking forward to learning more from you.
Kulvadee
  • #2,299
  • Aug 9, 2010 1:18am Aug 9, 2010 1:18am
Xaphod... Thanks for helping Kulvadee. Big E
  • #2,300
  • Aug 9, 2010 4:45am Aug 9, 2010 4:45am
Thanks Xaphod, you beat me to it!
Sentiment: Short on cash. Long on hope.
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