On My Way To The Top

I forgot the picture..

No, first example not much of a good example.

The second one is much better. Note the divergence from 5min Stochastics as well and the nice EMA positions(altough just a few on my screen)..

Yeah the first one doesn't really follow all the rules however I know you don't like the one hour on here but the exception and only exception to waiting on the thirty to be in agreement is if the hour and the 4 hour are moving in the same direction than I will take the trade and wait for the thirty to get on board which usually will be by the next close or what not...but I don't know the situation here and there isn't divergence but the second one seems like an excellent example as all the rules are met even down to the moving averages and the price breaking above the moving averages....good example that second entry...lol one thing I always keep in mind is I can't get all the pips...the most important and key thing to being successful is following all the rules and only taking the A plus plus set ups and even if its not a perfect set up...than we need to manage the risk by lowering our lot sizes or something but there are ample opportunities in the market to be picky...keep them coming mark...


Paul

Thats very well said!

I've been through the GBP since early February. Do I like to see this thight ropes? Wow I love them allready!!

This has been very helpfull my friend and will increase my trades significantly!

I'm not out there for the big ones only; they don't eat small profit from me away easely eather.. Now thats a good thing from all habbits left from scalping!

Thanks for the compliment and I'm just glad that I can help or be of some assistance to your trading... I hope you will keep posting your charts as you trade and I will do the same. We can all help each other learn.


Take care

Paul

ROPE: That's way I posted the simple indi in the beginning you might want to give it a try at least for me it helped to have a better view on screen.


Anyway from my experience with Stochastic:
1. the Rope and variations of it was probably the one I used most. (for my new longer TF test I changed that a bit as my emphasis is a bit different)
2. I found also very useful the 100,3,3 addition to round of the picture.

just some of my experience.

Here is UY as I played it the last couple of hours.
It looks funny but believe I made a lot of pips.

Shamu

Here you are; screenshot from awhile ago.
You can probably enter a bit earlier seen such a nice rope and most of the Stochastics in your favor and Divergence from a couple of lines!

Mark

The rope gets a bit messy rigth away but one could say that it was safe to stay in because it wasnt in overbought before, nor did the red lines came down much.
And price didnt came down at all..

Trigger by your standards would probably be the second vertical line.

Price close above all EMA and all EMA's are nicely in place; no Divergence from Stochastics here but very strong line-up though with all 5/15/30 Stoch making a 'bundle' above the 50 Level!

Nice converging lines on the rope figure as well..

I love playing most when H4 is crossing the chart!
Look at all the strong signals from the rope here as well.
Didnt knew about the rope at this time but had I known I would defenately have played the first situation!
The last situation(third vertical white line) is the strongest setup from the alignment of all TF's from Stochastics. All lines from Stochastics TF's pointing towards the H4 line is stronger than moving away from the H4 as for the first vertical line.
I remember playing it after the Payrolls..
Wow what an amazing chart!

Note: for the first vertical line I love this situation where all 5/15/30min stochastics come together just before getting overbought. In most cases its extremely profitable..

Figure with nice wall at second vertical line. Note that I like very much to see 15min Stochastics leaving oversold situation while H4 is crossing up..

So I'm back and should be a little more active in this journal again...for a few days this week real life has set in so I wasn't able to really post or even take trades like I wanted to but I want to introduce something that I said I would be working on in the beginning of this thread. I'm posting this as a reference to myself for the future and for anyone else who may find it interesting...But basically I've put together a template for longer term trades with the same concept behind the intraday trades. Now the way that these longer term signals can be used are in two ways...one we can use these signals as a means of getting in the longer term trend so we can take a signal from the higher time frames lining up and going down to the lower time frames and use our intraday rules to get in on the trend if the chance comes to get in and two...for those of us looking to trade on that longer term we have an opportunity to get in on those longer term swings. Like I said the same rules apply as the intraday charts but we will just be using the 30 minute chart instead of the 5 minute so in a sense the 30 becomes our 5 minute chart and than the stochs are from the 30 minute up to the weekly stochastics using the same principles behind the mtf stochastics...below are picture examples...

very beautiful examples...thanks for contributing and I look forward to seeing more from you as time allows...

As far as the longer term trades go its really all the same and thats all I was trying to demonstrate by those examples...lol all just mtf...and you can even get in an mtf trade and gauge whether you should hold or not based on the signal we are in on the higher time frame if that makes any sense like right now the eur situation may be bullish for the next couple of days not saying it will be but just one possible scenario and so those who got in on friday could have possibly held to see what further up move comes...or not...

Paul

here is the up rally on the eur usd on friday with the first vertical line being the more risky entry and the second line being the safer entry...yes i know the first entry was successful but the reason it was more risky in a sense is because one...we didnt meet all the checklist rules as there was no divergence right at that particular move and two there was no clear test and fail of a level...we do have the price breaking above a level and climbing from there which is one reason this trade entry was ok but at the same time makes it a little risky as far as the draw down goes because more times than not price will break one of these levels and retrace as the market is simply supply and demand as everyone is always looking for a logical take profit point and thats what these levels serve perfectly as so you always want to be careful of the people taking profit at these levels and the retracement or corrective move that could take place as a result another thing that made this a little more risky is the fact that I am very leery and nervous of those lower time frame stochastics on the stochastic rope or the blue lines and less concerned with the red although they are all very important as far as the converging and everything is concerned but I will always prefer to have the blue lines converged or converging with the wall as opposed to the red lines...as the red lines and higher time frame stochs are a bit more stable than the blue faster moving stochastics...but overall the mtf stochastics side of this looked very good as the 1 hour and 4 hour was trending up nicely with the 1 hour and 30 minute 100 stoch price line looking like it would break above the 20 in the next few closes which would create more buying pressure in a sense...and the higher time frame stochastics were converged with the wall of the stochastic rope as well as the 5 and 15 minute moving up together...I really would have liked to have seen the 30 minute moving up as well but with the 1 hour and 4 hour moving in unison its ok...but like I said this would have been a riskier trade for the reasons stated and I did not take that entry...now the second vertical line was a better entry with the blue stochs converged with the stoch wall for the most part and the red stochs coming together..the 5 minute stochastic pulling back to all the other stochastics in overbought with the 4 hour making its way up nice and steady...we have bullish divergence and a test and fail with the moving averages moving up very nice and spaced accordingly...oh and another thing that one would want to consider is that during the first vertical line you can look to the one hour and see that the stoch rope is very very tightly converged...oh and the second vertical line was good for about 48 pips as well (superstrong entry)...but this whole situation could all depend on how you manage your risk and manage this trade...lol but I don't know about everyone else but I will take 48 pips just fine...

Paul

Two lots in at vertical line...one lot exit at r1 for about 27 pips with 2nd lot still running with stop at break even just seeing what the market decides to do...if a lower swing high is created and price decides to go lower I will drop my stop loss down to lock in profits and trail this order like that adding to the position as seen fit but the reason for targeting r1 was it was the next logical take profit area and it lined up with the bottom of the 15 minute ascending channel as well as the ropes on the 30 minute and up were not suggesting a strong down move...reason for entry were the 15,30,1 hour were all slightly down to some angle with bearish divergence and a test and fail at a resistance level...another reason to not expect a strong move was the moving averages not being lined up so I just targeted the next obvious level...stoch rope convergeed

Paul

2nd lot stopped out for break even

This picture clearly illustrates why I added in the 100, 3, 3 stochastics in the last stochastic window as we can see all the stochs in that window are still lingering either above the overbought or near the overbought area with the 5 minute in oversold by itself so one...not only will the 5 snap back to the others and the 14 stochastics may not support this themselves as they are getting in position but they are also going to begin snapping back to their 100, 3, 3 stochastic counterparts...so this long was a move that should have been caught using the fundamentals of mtf...but not to mention the stochastic was converging on the 5 minute chart for the move up but on the 15 and 30 the stoch rope was nice and tightly converged or converging setting up for this strong move up....sigh....just something to consider for future reference...vert line should be two candles to the right at that close for the close of the 15 minute candle.

Paul