On My Way To The Top

By the way: this 2 divergence indicators I posted earlier are among the worst I've seen so far.
They miss the important points at all..
You want me to remove them from your thread?

I am emlpoying this OsMa indicator though; its a great thing!

I don't incorporate the news at all honestly...but I keep saying that I'm going to but the only time I tend to look at the news is to find out what caused a spike or whatever the case may be...but news can be a leading indicator as well...

Paul

Hi MJ,
I changed Stochastics settings to (5,1,3); I got some wrong alerts(no errors).
I think its still calculating the (14,1,3) settings; the signal seems to be correct for this settings.
I will keep monitoring the indicator from now on; it is a beautifull peace of work!
Just to let you know..

despichtt thanks for the feedback.

I did some more work on the new Universal Stochastic back at Spud's thread.

Now there are four possible cross Alerts on the Stoch in case someone needs it on a single stoch.

Just curious but why do you guys use the 14,1,3 instead of the 14,3,3

Because we do not use the D% line. (But it does not matter anyhow if you plot only the K% line) Just check it yourself: add twice a same stoch indi (Plot also Signal line) and set one to 14,1,3 and one to 14,3,3

on the 14,1,3 the signal line is the same as the Main K% line.

But you will see on the new Rope Template I posted on Spud's thread I use actually the x,3,3 settings (I anyway disabled the D% Line in the UStochastic indi)

Ok makes sense...I just wasn't sure what it did but so that basically negates the d percent line...coolness...


Thanks

Paul

Well, on the normal Stochastic indis I still but the color for the Signal line away: otherwise one can sometimes see it shining through.

For the new indi no need as one can disable it.



have a look here:
http://fxtrade.oanda.com/learn/forex...ull-stochastic
Formula

First the %K(fast) line is calculated, as with the Fast Stochastics. (This line is not shown in the graph.)
Then:
%K(full) = M1 - period simple moving average of the %K(fast) line
%D(full) = M2 - period simple moving average of the %K(full) line


So if you use a MA with Period1 it does do nothing

http://en.wikipedia.org/wiki/Stochastic_oscillator

As though yet again I've found a very nice reversal point on the eur usd where I expected price to come down but I've missed some good entries earlier today and even now on getting in on the sell off...and it may not happen tomorrow but I think the eur usd has room to move down for at least another 90 pips...at which point we may see hidden reverse divergence on the four hour chart....but I do know that the 4 hour will have to probably go down to oversold and than come back up to get the daily in order for the daily to leave the overbought area...just my outlook...but I guess this all does no good if I miss all my entries the way I have been...I've got to get better about that...sheesh and the same thing with the aud usd and the gbp usd as far as the falls in price..


Paul

Yep, one of the dangers when one playes with new ideas: the real trading suffers for a time being.

Anyway, there is definitely I danger in many of us traders (I include myself) of making things too complicated believing more filter and even more filter is even better.

Also something to watch out with the new alerter

Hi you both,

about the new Alerter. I have already some ideas but I'm still stuck with something else ( which is actually good as it addresses some of the issues I have to tackle when doing the new alerter for you guys)

On that point I have a question which is partially related: could you both spell out once more how you determine your INITIAL STOP LOSS setting and your TAKE PROFIT.

Probably all of us are aware of it but I still want to point something out in general but also in relation to our new Alerter.

Live Candles Vs. last closed Candle on MTF setups.

e.g. 5 min chart: H4 MTF setting.

1. using as base Closed candle: (Spud did mostly teach/use that : if I remember correctly(long time ago when I read all), I think he made an exception by the Rope)

Advantage: that's the real stuff also when you look through the past chart data. No repainting/adjustments as everything is already set.

Problem: at the begin of a new H4 candle (16:01 all is perfectly fine)
No repainting issues, and absolutely close on the action)

BUT before the just before the H4 candle starts the picture is very different. (15:58 we consider the last closed candle which has started at 08:00 and closed at 11:59 or let's say 12:00) This is a nearly 4 hour old situation (Spud mention this problem quite often)

2. using Live candle:

Problem: looking through past data does not give you the correct picture
as the intermediate data on the 5min charts will be already correctly readjusted

Exception ( in that case very close to the end of the candle (15:58) the past chart data are nearly correct.)

Problem for current data: especially if one uses Low Period/Slowing settings (maybe like 'despichtt' does: 5,1,3) one can get at the begin of a new H4 candle (16:05, 16:10 and so) more up and down wiggling: (in relation to an alerter this might be a problem as at a new H4 candle we have all other Lower TF also new candles with more up and own wiggling

If you watch the color bars you can get at each tick sometimes a change.

Advantage of using live candles: for forward trading (actual what we do in real trading) we consider always the actual situation at no time do we have the problem of using a nearly 4 hour old past situation.


I did not think all of that very well through - just some thoughts of the top of my head.


Personally I do not know what is better as a base for a trading decision. As they are just different.
Spud's general recommendation was using Closed candles. I guess I tent to focus more on the live one.

The perfect situation in my point of view would be: using closed candles but only at the time the Highest involved TF has just started a new Candle.
maybe that's not so clear so an example to consider:

MTF-Setup: M5, M15, M30, H1, H4

So the perfect situation in my opinion is:
1. Consider only closed candles.
2. AT e.g 16:01, 20:01, 22:01

( in my old automated trading system I did something like that (using very LowTF often from 10 sec up)
So if you have MTF-Setup: Sec10, Sec30, M1, M5 I would check only 1 or 2 seconds after a new M5 candle started.

e.g. 11:05:02, 11:10:02, 11:015:02 etc, etc

----

Well, just some random thoughts

On strong orders(Stochastics perfectly on top of each other, like the values I wrote in earlier post): I play 10 futures; Stop = 10cent but I migth adjust to the chart. Probably its best to take 12 cents as standard.
If I take profit on these orders I first take prpfit at 10 cents; adjsut stop to breakeven. Next profit target +10cents etc.. Often I dont take profit and just point arrow on some Pivot point.

I've been reading comment on your thread and I think your Elasic setup matches my weak play: If lets say 30min is already oversold but 5min crosses all up to dive down again on little pricegain thats usualy a continuation of trend.
I play 4-8 futures. Take first profit at 8c and adjust stop to breakeven. Next profit target at +6cents(adjusting stop again) etc..

hi,

some other unrelated thought/info.
I was playing recently a bit more with Daily ATR ( I noticed on 'pmullin86' chart he has also THV info indi)

if you mt4 broker uses Sunday data (as I mine does) most of the Daily ATR data are much less as MT4 internal ATR uses in such case Sunday as a full day.

Just thought I mention it. (BTW: I use mostly ATR Period 7 so Sunday is 1/6 (Saturday discounted) which really reduced usually the ATR projection quite a bit.

I wrote my own ATR where I calculate all myself - allowing to optionally disregard Sunday - but it is integrated into some other stuff.

Do you know what 10 cent (12 cents) is in Pips: Does that relate to a fix pips setting?

My general idea is to make a simple alerter: (probably also with some kind of simple but maybe useful stuff for faster backtest - not sure but I've got already some ideas.)

One of the main reason for such alerter was by both of you to keep easier track of more pairs.

There are 2 ways I usually do this:

1. many charts with different pairs and each one attached the alerter.
2. or have one alerter (kind of dashboard) applied to one chart (does not matter which pair) which scannes automatically the pairs desired

I plan to do both version: for the second one I will use 17 predefined pairs which I'm also in general interested:

#"--Major Main--"
"EURUSD",
"USDJPY",
"GBPUSD",
"AUDUSD",
"USDCHF",
"EURJPY",
"EURGBP",
"EURCHF",

#"--Major Other--";
"AUDJPY",
"GBPJPY",
"GBPCHF",
"GBPCAD",
"EURCAD",
"EURAUD",
"CHFJPY",
"CADJPY",

#"--Minor Main--";
"NZDUSD",



If you trade something else it would be good to mention it so I can include it.

Not sure maybe I do it all automatically for any pair but probably not.

Deleted..

1. using as base Closed candle:
Optional! I like your comment on this topic as well.
2. using Live candle:
Defenately my choise! You can than look at the chart to see if the candle closes obove some EMA! You're early at the show and most important: you don't miss any episodes!!!!

Personally I do not know what is better as a base for a trading decision. As they are just different.
Spud's general recommendation was using Closed candles. I guess I tent to focus more on the live one.
Me to!
The perfect situation in my point of view would be: using closed candles but only at the time the Highest involved TF has just started a new Candle.
maybe that's not so clear so an example to consider:

MTF-Setup: M5, M15, M30, H1, H4

So the perfect situation in my opinion is:
1. Consider only closed candles.
2. AT e.g 16:01, 20:01, 22:01

( in my old automated trading system I did something like that (using very LowTF often from 10 sec up)
So if you have MTF-Setup: Sec10, Sec30, M1, M5 I would check only 1 or 2 seconds after a new M5 candle started.
I see what you mean now. It would make some supercase if all conditions meet here! You could just miss all action as well(more likely).

e.g. 11:05:02, 11:10:02, 11:015:02 etc, etc

----

Well, just some random thoughts

Use Pivot Points; its the best out there!

I personally don't care much about ATR..

GBP: 1.6309 - 1.6319 = 10cents(0.001); I should say 10ticks probably..

I have realy no idea obout this pips story, I only use the word because I hear it so much and like the sound!

Don't know anything about the spot forex market; futures markets only.