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Craig Harris Stochastics Method

  • #3,101
  • Jan 24, 2011 9:35pm Jan 24, 2011 9:35pm
Quoting eelfranz
Sorry... didn't post above:
Eel - you've probably answered this somewhere, but for clarification, you're 5 method does NOT use the TDI and Stochastic indicator?
  • #3,102
  • Jan 25, 2011 12:47am Jan 25, 2011 12:47am
[quote=eelfranz;4340009]2 scoops,

When you first enter a trade many candles have a small wick... the trade is working... but as the candles get larger and larger the wicks normally get longer and longer... we give the dealer back a lot of pips.

This is not a rule !!! but rather something I discovered years ago and it's made me a lot of additional pips over the years....

Thanks thats clearer now, sorry for the number of questions Big E I will stop bugging you soon honest Please take all these questions as a complement to how highly I regard you and your system.

One last question on this 5 pip tip:

When you exit when it moves back 5 pips and then consider re-entry later in the move when PA is moving the right way again, do you re-enter on the same candle? Or do you mainly wait for the next candle to form? Also would there be a point in the move where you wouldn't consider re-entry even if PA was going the right way, e.g. if your are over 5 candles into the move?
  • #3,103
  • Jan 25, 2011 10:02am Jan 25, 2011 10:02am
Chims...

I almost always have the tdi & stoch on all my charts regardless of the method being used.

However, it's not necessary on the 5 method for me. It gives people more confidence when they have it on their charts it seems.... and it's a good confirmation to the current PA and possible trade.
  • #3,104
  • Jan 25, 2011 10:10am Jan 25, 2011 10:10am
Xaphod,

Thanks buddy for jumping in and helping out AGAIN. I appreciate it and I no they do too... Thanks

Big E
  • #3,105
  • Jan 25, 2011 10:18am Jan 25, 2011 10:18am
2scoops,

Your questions:

When you exit when it moves back 5 pips and then consider re-entry later in the move when PA is moving the right way again, do you re-enter on the same candle? Or do you mainly wait for the next candle to form? Also would there be a point in the move where you wouldn't consider re-entry even if PA was going the right way, e.g. if your are over 5 candles into the move?

1. I never re-enter on the candle I just exited on. I'll wait for the next candle and then refer to the TDI & Stochs for what its reading. If they look strong I'll usually re-enter... unless I see consolidation forming on PA.

2. After 5 candles ... again I'd refer to the tdi & stochs to make my decision.

Big E
  • #3,106
  • Jan 25, 2011 10:21am Jan 25, 2011 10:21am
Quoting eelfranz
2scoops,

Your questions:

When you exit when it moves back 5 pips and then consider re-entry later in the move when PA is moving the right way again, do you re-enter on the same candle? Or do you mainly wait for the next candle to form? Also would there be a point in the move where you wouldn't consider re-entry even if PA was going the right way, e.g. if your are over 5 candles into the move?

[font=Comic Sans MS][size=3][color=blue]1....
Thanks
  • #3,107
  • Jan 25, 2011 11:15am Jan 25, 2011 11:15am
Last nights trade - 4 hour chart - 1 lot - up $493.00 now and the trade is still open - 5 method...
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  • #3,108
  • Jan 25, 2011 11:22am Jan 25, 2011 11:22am
Just turned on my computer - 11:10 am pacific time. I noticed the set up last night and entered the trade... went to bed... Now $553 profit.
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  • #3,109
  • Jan 25, 2011 11:51am Jan 25, 2011 11:51am
1 hour chart. Take a look at this chart and the area highlighted... Note the smaller candle before the blue box. It only pulled back 5 pips but the highlighted candles pulled back 11 pips & 13 pips.

If I would have exited +5 pip pullback I would have kept an extra 10-13 pips total... minus the re-entry spread... It really adds up over the year...
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  • #3,110
  • Jan 25, 2011 12:05pm Jan 25, 2011 12:05pm
15 minute chart - Note PA in the blue box and on the tdi. Dont enter a trade when PA looks this way and the tdi looks pretty flat... The tdi would have told me to stay out... go check another pair for a possible set-up and better entry...
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  • #3,111
  • Jan 25, 2011 12:22pm Jan 25, 2011 12:22pm
Nice large candle with a 13 pip pull back...
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  • #3,112
  • Jan 25, 2011 12:36pm Jan 25, 2011 12:36pm
In retrospect on the 15M chart PA is choppy but at the second red candle you had an entry and had no way of knowing the future events encompassed in your blue box.
  • #3,113
  • Jan 25, 2011 12:47pm Jan 25, 2011 12:47pm
Out of the 8 charts I monitor it IS NOT UNUSUAL to have 4-6 good trade set ups going on at the same time between the London Open and 10am Pacific time (-8). Check different timeframes too on your charts.

It's quick if you'll set up your charts on each time frame and put it in your PROFILES... top left on toolbar. Works great.

For those who don't know how to set up your chart page... as an example: Delete (X) all the charts on your screen. Now I clicked the 8 pairs I monitor and just let them stack up on the page. Now go to WINDOWS on your toolbar and click VERTICALLY. now I have all 8 charts evenly spaced on one page. I make all charts 15 minute as an example... then I go up to the profiles on the tool bar and copy it there... then I go back and change all the charts to 1 hour...go to Profiles again and copy it... and do the same on all timeframes I want to monitor, etc.

So when I open my MT4 platform... I just go to Profiles and click on my chosen timeframe.. I check them out... then I go to profiles again and select another timeframe. This way I can check out 30 charts in about 5 minutes looking for a trade set up.
  • #3,114
  • Jan 25, 2011 12:53pm Jan 25, 2011 12:53pm
Bill,

Just looking at the tdi would have been enough to keep me out.

Again... I suggest going back in old charts where the tdi is rather flat and look up at the chart so it's easy to recognize possible problems.

Nothing in the Forex is 100% ALL THE TIME... TAKES JUDGEMENT, STUDY AND EXPERIENCE..

Only pointing it out... just my way only...
I prefer 12-2 and 4-6 green line on the tdi if possible...
  • #3,115
  • Jan 25, 2011 6:46pm Jan 25, 2011 6:46pm
Quoting eelfranz
Johnami...

I use the 5 pip S/L on the lower timeframes...

Otherwise I use a hard stop on 1 hr timeframe and up if I'm not monitoring the trade. Usually the top or bottom of the previous candle depending if I'm going short or long. Sometimes the swing hi or low depending upon the momentum of PA.

[font=Comic Sans MS][size=3][color=#0000ff]I prefer...
Hi Big E;
Probably a dumb question, please don't get mad. What part does the TDI and the stoch have in determining your entry with the 5 Method? If you answered it previously, I apologize. Welcome back, you were greatly missed.

Jim

Jim
  • #3,116
  • Edited 9:27pm Jan 25, 2011 9:15pm | Edited 9:27pm
Big Jim...

Thanks buddy

Lets say as an example I exit a trade on candle # 5 because it's a large candle that is pulling back over 5 pips on the wick. Instead of just re-entering... I'll check out the tdi & stochs for a good angle (12-2 or 4-6 if possible) and make sure I'm not sitting on the 32 or 68 lines on the tdi. If I am... I probably won't re-enter because I know a reversal is coming soon.

Before entering a trade it's important to have a solid set up candle. Glance at the tdi & stochs to see that the angle up or down is sufficient so it gives you a heads up guestimate that you have momentum.
  • #3,117
  • Jan 26, 2011 3:20am Jan 26, 2011 3:20am
Big E

Thanks for all your recent help with understanding the 5 method. I really like the simplicity of the system and the clear rules but I keep falling into the trap of thinking to can't be this simple.

Are there any other factors you take into consideration before entering a trade. I know you've previously mentioned:

TDI must look right
Stochs must be in agreement
Trade away from the line with the trend
PA closes above the line
Try to enter on the 2nd or 3rd candle
The 5 pip tip
not trading 15 minutes before news is due to be announced
not trading during consolidation
trade at the most profitable times (London open & New York open)

But are there any other factors you you consider?

Do you check the trend/tdi/stochs status of Higher/Lower timeframes before you trade
Pivot points
Support and Resistance areas from higher timeframes
Do you look at where we are in todays daily range
Average daily range
the tokyo channel
trend lines (I noticed you drew one on a recent chart you posted)
fib levels and big numbers
break of fractals
Do you consider volume?

THANKS
  • #3,118
  • Jan 26, 2011 3:57am Jan 26, 2011 3:57am
Quoting eelfranz
Big Jim...

Thanks buddy

[font=Comic Sans MS][size=3][color=#0000ff]Lets say as an example I exit a trade on candle # 5 because it's a large candle that is pulling back over 5 pips on the wick. Instead of just re-entering... I'll check out the tdi & stochs for a good angle (12-2 or 4-6 if possible) and make sure I'm not sitting on the 32 or 68 lines on the tdi. If I am... I probably won't re-enter because...
Thanks Big E:
Thanks for clearing that up, and thanks for all the help you give everyone, it is appreciated.

Jim
  • #3,119
  • Jan 26, 2011 9:26am Jan 26, 2011 9:26am
Quoting eelfranz
Xaphod,
Thanks buddy for jumping in and helping out AGAIN. I appreciate it and I no they do too... Thanks
Big E

I'm happy to help out. It is good to have you back here. The thread slows down quite a lot without you!
  • #3,120
  • Jan 26, 2011 11:22am Jan 26, 2011 11:22am
2scoops,

Your questions:

But are there any other factors you you consider?

Do you check the trend/tdi/stochs status of Higher/Lower timeframes before you trade
Pivot points
Support and Resistance areas from higher timeframes
Do you look at where we are in todays daily range
Average daily range
the tokyo channel
trend lines (I noticed you drew one on a recent chart you posted)
fib levels and big numbers
break of fractals
Do you consider volume?

Answer: No

Sorry... a lot of it is just experience and a lot of studying old charts. I hope to start posting video charts within 30 days to better explain what I see and how I interpret it which should help more.
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