what do you mean when you say ..."the smaller TF should be one step ahead (one candle) of the longer TF"? Could you please elaborate on that and possibly post a chart? Thanks in advance...
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Dislikedwhat do you mean when you say ..."the smaller TF should be one step ahead (one candle) of the longer TF"? Could you please elaborate on that and possibly post a chart? Thanks in advance...Ignored
Dislikedhttp://i43.photobucket.com/albums/e3...d10172007b.gif
This is how I trade. Use H4 Stoch to find the trend. If the trend is uphill, I go LONG only. It's one-way trading. Vice versa for a downtrend. Now the problem is the StochBars indi doesn't refresh. So I have to use two H4 Stoch windows.
Edit:
So how do you set up your way to find a trend?Ignored
DislikedWould you please explain in detail the two trades you just spoke of using the rubber band technique (euro/Gbp)Ignored
Dislikedhello k2kv, yes- I see and understand what youve done here. Nice trade and nice work. Thank you for taking the time to answer my post. But let me ask you another question- the 4hr(red line), do you wait until this line is flat or is it that you wait until it is above/below a certain line?(i.e. 70/30 or 80/20)Ignored
DislikedTrader_X,
The 4H red line only appears flat in lower time frames (if you observe it in a 4H chart, it displays more of a wave). Anyhow, it's not the "flatness" that counts. According to Spud who originated this technique, the 4H should be in the oversold/overbought position (23.6/76.4) in order to validate this trade.
In my illustrated trade, it was slightly below, not the optimum position according to strict rules. I felt it was close enough, but others may disagree. And remember, I am definitely no expert, having just been reintroduced to this "Rubber Band" method by Charlies.
Good trading to you...Ignored
DislikedHi trader_X,
I've attached a screen shot of the EURUSD trade (both trades were very similar).
The vertical red line is approximately where I entered, based on the 15M stoch (the light blue line). I waited for price to cross the pivot, and placed my trade.
Hope it's all clear.Ignored
DislikedGood trade reguardless, but I thought that an elasticity trade only applied to the 15m and the other stoch were all either over bought or sold? One other question what is your typical TP, I try to focus on getting 10-20 pips and getting out, what is everyones take on this.Ignored
DislikedHere is the big thing about Forex in general you have to let the trade come to you, do not anticipate what the indicator will do, let the indicator do its job.Ignored
Hi guys, I just took a nice rubber band trade this morning. Went to around +14, retraced all the way back to -2, then came back up to +14, and I exited when I was +13 pips. At this very moment price has moved down to 161.12, so I've left that on the table. Chart below, I entered at the red vertical line.
DislikedHi Kermut,
Yes, I share your concern about entering a trade based on still developing candles. There are a couple of thing that I use with the pound/yen:
Wait for the close of the targeted candle.
Draw a trendline on the Stoch window to get a sense of direction of particular timeframe
Try to go with the 4hr.trend because even if I prematurely enter and find myself dealing with a bigger drawdown, the volatility will turn things around....most of the time... unless there is a new trend in town!
Keep an eye on pivots, support/resistance levels. If you are looking at a 15min candle that is nearing an important level and you still have 2 or three candles for the 1hr. to close, you may want to wait it out....but what if the 15min has no lower wick and it breaks through a significant level? Then, I may decide that the momentum is strong enough to push the 1hr. along.
Trade the elasticity of the 15min. This approach works well as long as the higher time frames are in an overbought/undersold area or near it. With the pound/yen you see the 15min take off like a rocket and the higher time frames stay at the launchpad quite often.
These observations have been made when my TP is 10-20 net pips.
Hope this helpsIgnored
DislikedGood trade regardless, but I thought that an elasticity trade only applied to the 15m and the other stoch were all either over bought or sold? One other question what is your typical TP, I try to focus on getting 10-20 pips and getting out, what is everyones take on this.Ignored