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Craig Harris Stochastics Method

  • #3,061
  • Jan 21, 2011 12:59am Jan 21, 2011 12:59am
Quoting sear
I have watched the free videos 3 times each and don't remember seeing how many pips CH used for S/L.
In general CH suggest placing the SL underneath/above the RC, or the area of consolidation (if you are trading out of consolidation). When and if that SL is small...then he suggests that a safer value to use is 35 pips...but never more than 50.

Quoting sear
I have always traded using larger time frames looking for 1:3 risk reward ratio and therefore taken back at such a large risk for 30-40 pip target. After thinking about it last night it made more sense. I think CH's method will blend in nicely with my larger time frame strategy as it's a reversal strategy also but using pending orders.
Right now I'm just concentrating on CH's 15 Min. strategy much as he presented it in his videos and from what I'm picking up from your thread on what is not on his videos.
Sounds like you have a plan. I would say however, that trading the CH method on the higher frames is a completely different ball game. In his Hawaii seminar he unveiled his new methodology for trading the higher frames...and I have heard that it is not the same method as his M15 RC method. I've done plenty of back testing with each TF...and the results are much less flattering than the M15, as the swings are a very different story.

Regards,
Neo
Sentiment: Short on cash. Long on hope.
  • #3,062
  • Jan 21, 2011 1:03am Jan 21, 2011 1:03am
johnsund...

Yellow line on the tdi?
  • #3,063
  • Jan 21, 2011 2:01am Jan 21, 2011 2:01am
Quoting Bill
I didn't know Craig Harris had a webinar last night. Please tell me it was recorded and where I can get a copy.
Sorry for the confusion caused guys, there wasn't a webinar, I should have said "I downloaded and watched a copy of Craigs "how to spot a true reversal" webinar last night.
  • #3,064
  • Jan 21, 2011 2:12am Jan 21, 2011 2:12am
Quoting eelfranz
johnsund...



I'm very weary of trade set ups near the 32 & 68 on the tdi. If they are larger candles I may enter the trade... small candles is a flashing light to wait and see... reversal coming soon in most cases. Trade on the reversal is best.


[font=Comic Sans MS][size=3][color=#0000ff]Big...
Do you mean that if the green line is up above the red line and is already above or on the 68 you are weary of going long (as you are already in the overbought zone) and if the green line is on or below the 32 and it goes below the red line you are weary of going short (because you are in the oversold area).

E.g the ideal long setup is green bouncing up off the 32 and shooting 12-2 angle up over the red, yellow and 50 line?

And the ideal short trade is the green bouncing down off the 68 and shooting below the red, yellow and 50 line with a 6-4 angle?
  • #3,065
  • Jan 21, 2011 2:49am Jan 21, 2011 2:49am
Big E

Traders_Dynamic_Index has a yellow line and a pair of blue lines. I think in one of the earlier posts you mention that you don't have the yellow line on your chart. In the Synergy videos they discuss how to use the yellow and blue lines. My question was why don't you??
  • #3,066
  • Jan 21, 2011 5:28am Jan 21, 2011 5:28am
Quoting eelfranz
johnsund...

When the next candle appears after the set up candle it's either red or green. If it's the same color as the set up candle... I'm usually in the trade.

Bear in mind that if the candles are small I wait to enter until candle #3 or pass on the trade. Double check tdi & stochs with your cross hair on the chart.

[font=Comic Sans MS][size=3][color=#0000ff]I'm...
How can you enter on the second candle if it is the same color? You won't know what color that candle will be until the hour is past as it could spike a reverse on you.
  • #3,067
  • Jan 21, 2011 1:48pm Jan 21, 2011 1:48pm
Quoting NeoRio
In general CH suggest placing the SL underneath/above the RC, or the area of consolidation (if you are trading out of consolidation)....
Yes Neo I have every intention of using the 15 min chart for the CH method. Thanks Have a great weekend!
  • #3,068
  • Jan 21, 2011 10:52pm Jan 21, 2011 10:52pm
2scoops,

yes
yes
yes
  • #3,069
  • Jan 21, 2011 10:59pm Jan 21, 2011 10:59pm
johnsund,

I don't like busy charts or indicators. On the tdi I removed the blue lines and made the yellow line dotted... just the way I like it... I'm the one trading it so I'll make it the way I like it...

I've found I trade as well or better without... it's clutter to me.
  • #3,070
  • Edited Jan 22, 2011 12:07am Jan 21, 2011 11:45pm | Edited Jan 22, 2011 12:07am
Bill...

How many candles on average do HA candles go when there is a reversal? Answer: 3-8. When PA changes direction it's usually candle #2 or #3 that is the entry candle when it crosses and closes over the 5 ema... right.

The best you can hope for is to put the odds in your favor...

Yes the entry candle can reverse on you... but how often does that happen with HA Candles? Not often. The odds are in your favor that it will continue 3-8 candles in the same color/direction. STUDY THE CHARTS IN OUR THREAD and learn... pay attention... take notes... also study how the tdi and stochs look like during good trades. Burn it into your memory.

When I first started trading years ago I was afraid, had little confidence and was ready to jump out of a trade at the first possible sign of trouble from my skill level at that time.

I bought books and paid for classes and systems and later discovered it was a waste of my time and money in most cases. How I really learned was studying old charts including the tdi & stochs. I learned by observing what had to happen on my chart,tdi,stoch to make a good trade in most cases.

Use my 5 template... pick a pair and go back 6 mo. or a year on your favorite time frame... now observe and take notes. When XXX good trade happened.. what was the tdi, stochs, chart doing at the time. Do it until present time... then pick another pair and do the same thing until you learn what to look for.

Now I'm sucessful 70-80% of the time because I know what to look for each time. In fact anymore trading is boring and it's so easy...

Look for certain times of the day in your time zone when good trades happen over and over again. For me it's 5am pacific time is best or during the London session...

I studied old charts for hours a day until it became natural to spot good trades. I traded 5 & 15 minute charts and then graduated to 1 & 4 hour charts to keep my sanity. Then I moved up to trading full lots where you could really make money to keep trading interesting and worth while.

Just keep studying and trade on Demo until your confident..


You have to study and practice until it's second nature and easy.
  • #3,071
  • Jan 21, 2011 11:50pm Jan 21, 2011 11:50pm
Todays Trade - 5 method -

Smaller candles... but ... The 5 ema was still heading up, the green line & yellow dots were heading up as well on the tdi and the stochs line heading up so I figured the odds were in my favor. Good for 83 pips... 1 hour chart...
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  • #3,072
  • Jan 22, 2011 6:53am Jan 22, 2011 6:53am
Quoting eelfranz
Todays Trade - 5 method -

Smaller candles... but ... The 5 ema was still heading up, the green line & yellow dots were heading up as well on the tdi and the stochs line heading up so I figured the odds were in my favor. Good for 83 pips... 1 hour chart...
Big E thanks for sharing you knowledge and also thanks for keeping this great thread going.

First of all I'm new to trading so I hope the following question doesn't sound too dumb.

I noticed you mentioned your concerns about the small candles on this trade. I would also love to know whether you had any concerns with how the TDI looked.

E.g. Would you normally like to see the green line coming up and crossing over the 50 line (and the red and yellow). Or are you just happy that green is up crossing over red and up above the 50 and the dotted yellow line.

From back reading the charts it seems we want the yellow lines to at least be flat or ideally have one or both of them in agreement with the direction of the trade we take this seems to be very important.
  • #3,073
  • Jan 22, 2011 7:14am Jan 22, 2011 7:14am
Quoting eelfranz
Todays Trade - 5 Method
I'm also interested in the previous chart you posted on the 20/01/11. TDI looks near perfect but did you have any concerns about the two yellow lines being against the direction you were trading (I guess you could say they are flattening out). Was it the near perfect TDI and the strong looking setup candle that encouraged you to enter this one.

Thanks again
  • #3,074
  • Jan 22, 2011 7:34am Jan 22, 2011 7:34am
Big E, it looks like there was a similar entry about 6 candles earlier. Is there a reason you would not take that entry - unless of course you were not trading at that time?

Thanks!


Quoting eelfranz
Todays Trade - 5 method -

Smaller candles... but ... The 5 ema was still heading up, the green line & yellow dots were heading up as well on the tdi and the stochs line heading up so I figured the odds were in my favor. Good for 83 pips... 1 hour chart...
Read the entire thread BEFORE you ask questions!
  • #3,075
  • Jan 22, 2011 2:34pm Jan 22, 2011 2:34pm
2scoops...

Yellow line on the tdi isn't that important to me personally.

Generally... the best trades (long example) is when green is above red, yellow and 50 lines and then enter... and vice versa. (tdi)

With experience, knowledge, skill and confidence you'll be able to make money on a trade when others fail and lose money on the same trade... because they don't read the signs like you do or have your skill level. Same info with different results.

If you needed brain surgery... would you want a doctor who skipped classes here and there, never did his study and homework, etc. Of course not.

Traders throw 300-1,000 bucks in an account and after reading a few things can't understand why they are losing money when they trade... but the trader next to them who put in the necessary time to learn to trade is making money hand over fist...

Hope that helps...
  • #3,076
  • Jan 22, 2011 2:59pm Jan 22, 2011 2:59pm
Johnami,

I wasn't online at the time.

I have 8 pairs/charts on one screen (5 method)...

Most of my trading is done from 5am pacific to 10am. If I wake up at night I'll check my charts quick looking for a set up... if none I go back to sleep. If I'm not tired at the London Open I'll check the charts quick then too.

Otherwise I'm not even looking at the market and I'm off line. I trade for something to do... fun. I don't need the additional income from trading. In fact I donate most of my profits to needy organizations, childrens hospitals and needy people I know locally.

I'm past that point in life when I wanted one of everything. I owe no one any money. Newer car paid off... just pay the normal monthly bills like we all do. I've got many credit cards but I pay off any balances monthly to avoid 20-30% interest charges...

I started this thread to help other traders when possible... and yes I make mistakes and lose money now and then when trading... after all... I'm human.

Took me a lot of years to learn many of lifes lessons and what's really important in life.... long road and I'm still on it...

and... I'm really happy for any traders success...

  • #3,077
  • Jan 22, 2011 3:08pm Jan 22, 2011 3:08pm
Welcome aboard to all new or experienced traders who found this thread... come back often... thanks...
  • #3,078
  • Jan 23, 2011 3:34am Jan 23, 2011 3:34am
Big E, Which 8 pairs are on your screen?
  • #3,079
  • Jan 23, 2011 10:42am Jan 23, 2011 10:42am
Quoting eelfranz
Welcome aboard to all new or experienced traders who found this thread... come back often... thanks...
Thanks again BigE

One last question concerning how we use the moving averages in these strategies:

I understand that with the 21/233 method we trade away from the yellow 21 line and the blue 233 line.

My understanding is that with the 5 method we trade away from the yellow 5 line only (the 233 line is not used in this method), is this correct?
  • #3,080
  • Jan 23, 2011 4:38pm Jan 23, 2011 4:38pm
Mili ...

Pairs on my main screen I monitor.

e/u, g/u, e/j, u/c, a/j, a/u, e/g, u/j
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