triple stochastic

Hi

My personal opinion is that treading only kumo breakouts can be the most successful system because the trend direction is clear and its strength also.

However, looking at the ichimoku chart, I can see that there are many opportunities to make profit but which the ichimoku trader would avoid as weak and even dangerous attempts.

Of course, I admit, I cannot predict the change of the trend-direction after the kumo breakout slows down and there is an overbought or oversold period.

so, briefly my observations of trend movement is as follows

1. trending really starts when there is a breakout
a. here one have to be careful of pullbacks
2. after sometime starts the oversold or overbought region
a. these regions are the place where the market is not trending but ranging. (this does not happen all the time). here it is difficult to see which direction the price-line will continue.

The triple stochastic

I was looking for long time for an indicator that can show cycles, the main ups and downs of the trend. All I found were imperfect, not precise. The triple stochastic I made is also not perfect but but IMO it is a bit better. It could be optimized and to do that I need the help of experts on this forum.

I also don't have the ultimate rules how to use it but I can give you an idea what is the meaning of the lines.

the yellow and the purple are like MAs
the blue red are both showing the direction; their cross-points can be used as entries and exits. (in comparison to the MAs and the kumo exit might be not necessary at every cross-points.)

The alligator is also helpful to identify earlier breakouts than it is shown by kumo. When the price-line is below the yellow line it is downtrend; when above, it is uptrend.

I made the parameters of the indicators purely on observational and not mathematical ground. The triple stochastic and the yellow line of the alligator are meant to show opportunities for trading that would be avoided by ichimoku traders as dangerous.

So, I don't say this system is good and certainly it is far from perfect but with some good advises from senoiur traders it might become a good system.

Please, give your inputs and also some additional indicators what you would use to indintify 100% good breakouts on earlier stage than the ichimoku usually shows.

Few rules when not to trade:
1. when the yellow line of stoch is almost flat
2. same rule is for the yellow line of the alligator.

It seems that 15M chart would be with the least noise but this system could be applied also to 1M and 5M charts.

I am awaiting your positive criticism

Bodisatva
May Buddha bless you
and happy xmass

here are some pics of the system of M1 and M5 charts

try combine your system with candlestick pattern indicator




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volume indicator

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The indicator (attached) can help to identify early breakouts.

to see the main trend look at the yellow line of the triple stochastic

to scalp on M1 without fail enter

when the kumo cloud shows upward direction; it is than green
do long at CCI crossing the 0 line or the green 40 line and exit when it comes downward crossing 100 or 40 if the kumo is favorably going upward

when the kumo could is brownish going downward
do short at CCI line crossing the o line or the red -40 and exit when it goes up crossing -40 or even before at -100 when kumo is not favorably going downward

when the price-line is within the kumo cloud or the kumo cloud has a flat line any action is not advisable
it is also risky to scalp in the opposit direction than in which the kumo cloud goes

don't hunt to get all the pips, it is not possible
hunt for favorable moments as described above

here is another template I would recommend only for using it on 5M upward

the n fxforecast and heiken ashi indicators are also in it and the first one is given in the previous post

entry / exist is very obvious looking at the yellow line next to price line.
the farther it is from the price-line the better; it shows the strength of the trend; when almost flat, don't trade

regarding the triple stochastic:
as long as the yellow line is above the other lines there will be downtrend sometimes with big oscillations of the price action

the vice versa configuration is for the uptrend.

Every day there is at least one big breakout when the trend is going very smoothly and strongly either up or down. some wait only for this breakout and make a lot of profit.

on the below picture you can see an envelope and the price movement in it
1. when the price-line and the blue line behind it break out from the envelope (up or down) and
2. when the CCI line goes beyond 100 line or below -100 line there is a big breakout.

this indicator is for very patient persons and if you are a computer man hanging all day long on your PC than you will certainly catch the right moment for action.

It would be nice if somebody could make an alert when the right moment is there for entry the big breakout.

rules:
1. the bigger the distance between the blue and yellow lines on the sides of price-line, the stronger the up or downtrend is.
2. when the blue line, yellow and the price line does not intermingle anymore and when the kumo cloud is also shooting (green) up or down (brownish) that's the beginning of the breakout.

I will only mention few rules, and than you can test the setup

For more easy use of guppy indicator I added the CCI and the triple stochastic.

when the guppy shows change of trend direction it is the CCI that helps when to enter / exit.
I find when the CCI cross upward the 40 line and the guppy shows uptrend we can go long.

When the CCI cross downward the -40 line and the guppy shows downtrend we can go short.

the triple stochastic is there to filter out false reversals and can keep us in down or uptrend to the max.

The kumo cloud helps us to see in advance the change of the trend.

My recommended time-frames are from M5 up

Any comments, improvements etc are welcome.

Oh, and here it is how it looks

has anyone used this system with 1 hour timeframe?

Has anyone use this "system"? or it is in progress )))

Here is a picture that shows how the CCI 20 can help out the triple stochastic and vice versa

the CCI can show the turn-point of the trend and
the triple stochastic filters out fals reversals
the rainbow indicator is also nicely filtering out false reversals shown by CCI 20

downtrend starts when cci goes below -40
uptrend when cci goes beyond 40 line

If anybody could make an EA as seen and described above, using triple stoch and CCI20 that could be quite good one. Or if it is too complex to make only a CCI 20 ea would be also nice.

I was thinking about 2 methods of trading that could be switched from one to another at any time.

1st method
buying when the line 40 is crossed and
selling when the line -40 is crossed
CCI should be 20 with the take profit and stop loss option

2nd method
It would be also nice if you put an option that
buying starts at line 40 and close when coming back to 40 and
selling starts at -40 and stops when coming back to -40

please drop me an email if anybody of you could code this ea.

tnx

I just had a good example, you can see on the picture, how the kumo cloud can help.

- when the price-line is in the cloud anything can happen, any sudden, unexpected price action movement.
- at this time many don't like to do anything, just wait and surely it is the safest way not to lose any money.
- on the picture you can see how nicely a downtrend started but then suddenly there was an explosion in other direction. this is good only for scalping using the CCI20 as described before.
the smooth downtrend started after the priceline came out from the kumo cloud.

- so the kumo can help not to take long term buy or sell decisions
- looking at the triple stochastic the price action still went down for some time

Here is one more interesting setup of indicators that can show the reversal of trend and filter out false reversals.

I will just mentions this much:

when the price line is above alf buy
when the price line is below alf sell
Look if the other two indicators are in agreement with your decision.

according to my experience the best use of this method is from M5 up but M1 also if you are a quick scalper.

and when alf is straight you can take attentive rest waiting for explosion

setup

2 overlapping stochastics

parameters
1. 80, 13, 4
2 80, 20, 4

aligator

CCI20

like before explained on cci, the crossings of 40 and -40 lines are for buy and sell respectively

on the picture, it is very nicely visible how the 3 indicators harmoniously show the change of the trend on M15.

I will give no more explanations since the picture is self explanatory and the indicators easy to follow.

Interesting indicator.

How it can be used? May you explain please some?

Hi,

put the parameters to 80, 3, 3
put a second stochastic in the same window
with the parameters 80, 9, 3

the actions of M1 stochastic are filtered by higher TF stochastic

I just made a bad entry, buying at low volatility and pre mature movement... I hate doing this s***... If I keep this up I'm just going to be averaging 20 pips a day... good thing is a demo account;-). I got out of a hole last time, let me see if I can get out of this one too...

I'm in EURUSD at 1.324. It should start heading down soon, I just can't believe I bought at the wrong time... silly silly silly.