Spuds Stochastic Thread Theory

I only use ropes in the H4 timeframe... you can try lower timeframes.. H1.. but I don't recommend you less than 30M...
instead of entering when the wall crosses 20 or 80 levels... just look for divergences between price and the wall... wait and see.... if it reverses finally you will have the entry at the cross of 50 level. only if it is still a rope there... if not.. it may turn again and continue with the trend... I will be back in middle October... and will try to create a journal of this strategy explaining each trade. I find this very powerful combined with the divergences. check divergences thread also http://www.forexfactory.com/showthread.php?t=87088

Here's just another example of how effective the "rope" can be even against the major trend. I usually search out any thread "ropes" that are just forming either up or down, place a tight stop loss on either the 1hr or 4hr and jump in. Try it with your demo or live mini (.01) and see how it performs.

another nice example of a powerful H1 rope today
self explanatory
trade the ropes!

I read this whole thread; only to find out that the OP is no longer posting here and noone else has posted anything here for over 1 month......Is anyone still using this method??

Luckily for us, Spud is still posting on FF. You can search for several other threads created by him that are variations of what you have just read.

You can find the most current thread here: http://www.forexfactory.com/showthread.php?p=2407266

Don't feel like you wasted your time reading this thread. I suggest reading all his work as everything ties in together.

Thanks ajaz...will start reading the recent thread and glad to hear spud still posting in FF...

HI, I install indicator, and Compile. No Errors. It will not show in the Navigator????
al
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ok, i just came across this system about 2 days ago and so far i love it. its simple and clear to use. perfect for me.
that said, i would like some feedback on my first trade using it to know whether i have the right idea and where i went wrong, etc. so here it is.

the trade.


First things first. My keyboard shift keys are not working for some reason....

the setup. 15M chart on eurusd had turned up, formed a beautiful wall and and crossed the 20.
30m chart turned up, formed yet another beautiful wall and crossed the 20.
1h chart had turned up and was low, the peak was just above the 20.
4h was above 50, and while it had not actually started up, the momentum it had slowed dramatically and seemed to be poised to move up.

I entered at 1.2961 with a 30 pip sl and a 20 pip tp.

While in the position, I watched the price move to the 20 pip target at which point I locked in 7 pips of profit with my stop loss and moved my take profit up to 35 for some breathing room in the yay more money direction. In hindsight, since this was my first trade of the day, once the price had lost its upward momentum at around 23/24 pips I should have closed the trade and kept the extra pips for my bank. Please comment on my hindsight if nothing else.

Future analysis, the 4h chart is showing signs of the trend weakening. At the beginning of the trend the highest low peak was low on the stochs. And as the trend progressed, a high seemed to have been reached in the low peak previous to the one I traded on. Since this peak is now lower, I suspect a weakening trend and possibly a reversal, the trendlines on my chart are there for confirmation of this theory. Do not trade the upside again until I am certain of trend direction.


Spud, I have been reading your posts on mtf stochs for the past few days and have found the strategy to be very easy to execute and read. Just my flavor. Hopefully I can have the same success that you have had with it. Please review my analisys of this trade and let me know if I am doing it right... although you have been very clear on what goes on in your mind, I have yet to see a specific ruleset so I am trying to interpret the trades that you have documented on this post and learn all of the leasons that you have demonstrated for us here.

Thank you spud for sharing this system with us. As far as I can tell so far, it is one of the easiest systems for me to read and use that I have come across so far.

Thank you for anyone who takes the time to review this and criticise my trade.

btw, the eurusd is currently trying really hard to break through that upper resistance.

This "rope" is an interesting approach. I am not sure if divergence is emphasized. Being able to spot divergence would have been profitable when stochastic last peaked. The stochastic lines started to turn down but price kept going up. The positive divergence happened when lower prices made higher stochastic readings. This does not always mean price will continue up because no indicator predicts the future but only give clues.

The "rope" I use has only three "threads" but the theory is still applicable.

This seemed like an interesting idea but the thread died out a couple of years ago.

Anyone out there still using this method?

I'm still using it, live on CL. and .1 lots on USDJPY, EURUSD and GBPUSD.

Here's a pic of today's NZDUSD chart.

I go for a mixture of the "rubber band" trade, BoxingisLife's strategy, Spud's "ropes" and Jame's16 pinbar, ideally all around a psychological number. Then wait for the best trades a la Clockwork.

I can check charts in a few seconds using this which suits me fine.

http://alfasecure.com/traders/spud.gif

This method is extremely similar to a "new" indicator called STPMT by Eric LeFort - search for STPMT on http://mogalef.com/index.php?p=1_12_Trading-Indicators.

I've also separately created a similar indicator called Stochastic Rainbow (attached below) which I use as part of a 5m chart trading strategy, mostly for identifying points at which to take profit (shown in pic)...

http://s7.postimage.org/c1epo0m2x/image.png

These indicators are quite powerful at what they do, but they're part of a solution, not something you can trade off on their own.

hi ellecho

can you give indicators and a template please thanks lodol

Hello there!
I'm trying to force this stoch to work on daily timeframe. I want to make a system which uses this thread theory.
I want to trade breakout (tight stochs, opposite to the trend) or with the trend (stochs are in the direction with the trend).
To define the trend I want to use Keltner channels with 20 ema, weekly 5,3 and 14,3 stoch and 10 day RSI .
Has anybody tried to trade it on Daily timeframe?
And question to experienced traders: My win/loss is about 1:1, is it bad?
Of course, this system is earning, at this time, in optimistic scenario, 200 pips/month. But I don't know what to think about win/loss ratio :S

This is better for me

I am in

I really love this.

Spudfyre,
Thanx for a really detailed explanation on your use of stochastics. I'm thoroughly enjoying it .

thansk edna i´m 2 eyars looking for strategy one question rope 1h and 4h is 99% acurate