Intraday profit system

[johnnypareek]

Hi,

As u marked line I guess u mean to say is that %k%d is overbought so it may be a fail attempt. Well, Ocilla... has drawback as they can stay OB n mkt. continue goes up. Lets c here

johnny

 

[johnnypareek]

The comment was not meant to hurt anyone or to be divisive. I'm also not trying to show him up, but if he Kcsusha actually trades using MA's, and using them as a crossover, then I'd like for him to how how he is using them to his success. I can post them all day long and show how they won't work.
I promise to stand corrected if proven wrong.

BTW, be excited about your system. After all, I'm still excited about mine. If you have jumped in here with a crossover MA system, I would be posting all the warning bells, yet, still be inviting our experimentation.

Hmmmm,

just my view, Always hear carefully, track them, try to look deeper into. To whom??? ?Them who critis.. u. They will be ladder of ur sucess.

just a thought

johnny

 

[prst]

Hi,

As u marked line I guess u mean to say is that %k%d is overbought so it may be a fail attempt. Well, Ocilla... has drawback as they can stay OB n mkt. continue goes up. Lets c here

johnny

Hi buddy,

thanks for the useful post.

i have a query.
is it good idea to enter long, when the stochs has already entered into overbought zone ?
or is it time to prepare for shorts by waiting for it to come from ob to neutral zone?

 

[Debarghya Mukherjee]

Yes you are right. RSI, Stochastic etc has a tendency to sat OB or OS for long time. I have an answer to it----
What is Stochastic? It is a momentum indicator not OB/OS indicator. Ok good. The what is means to tell us? Stochastic helps us to watch the momentum of the latest trend. So, if it is in OB then it has lost power of momentum, not that mean price must come down. Even with weak momentum price can go higher, right? Or again it can come down little and in extream bull market price will again go up and after just little bit of fall in Stochastic it will again raise. Simple. I think I have made my point clear.


Ok. So why we use Stochastic? Well I think use Stochastic along with other indicators, and see how support and resistance lines are? if it is in OS and in support line OR it is OB and near to resistance line we have a high chance to have a reversal.

If other mebers has any comment on it, I am waiting ?

Hi,

As u marked line I guess u mean to say is that %k%d is overbought so it may be a fail attempt. Well, Ocilla... has drawback as they can stay OB n mkt. continue goes up. Lets c here

johnny

 

[Debarghya Mukherjee]

Dear friend prst
please read my post

http://www.traderji.com/technical-analysis/58744-intraday-profit-system-25.html#post600980

Hi buddy,

thanks for the useful post.

i have a query.
is it good idea to enter long, when the stochs has already entered into overbought zone ?
or is it time to prepare for shorts by waiting for it to come from ob to neutral zone?

 

[prst]

Thanks pal,
most of us have a misconception regarding RSI and stoch.
we have a notion that longs should be entered when it crosses from below to above 30 and we should short when it goes to below 70 from top.

hence my query.
thanks for the reply..

 

[johnnypareek]

hey,

Well,

Lots of Trader I know who enter long on OB of these indicators. Strange??

Well, Because they do this for 5minute 15min TF. When these are OB and their time frame is higher where these indicators just recover from OS or at middle. So, when agrassive trader start booking profit or even short sell, they buy and get reasonable price for there trade.

Hmm, Just 10 paise

johnny

 

[4xpipcounter]

Debarghya, I'll try and get through this post with no typos. I looked at my last post in your thread, and I'm thinking, "I need to take an English class."--lol.

The stochastics oscillator is the one I use as the most nominal part of my methodology, but as a confluence with other indications, it is very useful.
Personally, of all the oscillators, it is my favorite because it gives the truest OB/OS signs, the truest divergences, and I think it is the best momentum indicator of them all.

One of the reasons you need a confluence in order to signal an entry is that PRST made an interesting point. The answer is "no", you do not enter long if it is OB, but you could still get another strong spike in the same direction.
This is where using other TF's come in handy and are needful. I could conglamorate all the USD pairs from Friday's action, but I won't. I'll use just the EUR/USD as an example. It was forecasted all the respective pullbacks on Friday. In just evaluating the stochastics, it was highly OB on the hourly, 4-hour, and daily, but still pointing straight north on the weekly. Therefore, it is safe to say the market is going to make a correction of the larger trend only. There is no trend reversal, but a pullback within the larger scope of things.

Confluentially, there were many strong indications with all elements of the ichimoku, standard deviation channel on all TF's, and my proprietary S&R's to signal this temporary reversal.

In summary, I like to use the stochastics as a warning light. If it is OB on the hourly, then check the 4-hour to see what is says, then keep working upwards to see what kind of agreement you get. Check the confluences with other indicators to see what they say. Once the package deal comes together, then confidently enter your position and enjoy the price action in your favor.

Yes you are right. RSI, Stochastic etc has a tendency to sat OB or OS for long time. I have an answer to it----
What is Stochastic? It is a momentum indicator not OB/OS indicator. Ok good. The what is means to tell us? Stochastic helps us to watch the momentum of the latest trend. So, if it is in OB then it has lost power of momentum, not that mean price must come down. Even with weak momentum price can go higher, right? Or again it can come down little and in extream bull market price will again go up and after just little bit of fall in Stochastic it will again raise. Simple. I think I have made my point clear.


Ok. So why we use Stochastic? Well I think use Stochastic along with other indicators, and see how support and resistance lines are? if it is in OS and in support line OR it is OB and near to resistance line we have a high chance to have a reversal.

If other mebers has any comment on it, I am waiting ?

 

[4xpipcounter]

PRST, let me add that the further you extend those extremities, the truer the indication you get. Respectfully, 70/30 is hardly OB/OS. Many use 80/20, and that hard does the job. Trying using 85/15, and then wait for the cross in that area. Just do that as a casual observance on any TF.

For trading, it is still the dominant TF you want to consider. The dominant is not always the higher. As the previous example I had given, the EUR/USD became extremely OB on the hourly, 4-hour, and daily, but the opposite was true on the weekly. That was the recipe for what added up to an easy 120-pip counter-trend trade.

Thanks pal,
most of us have a misconception regarding RSI and stoch.
we have a notion that longs should be entered when it crosses from below to above 30 and we should short when it goes to below 70 from top.

hence my query.
thanks for the reply..

 

[Debarghya Mukherjee]

Ya you are right Paul. Stochastic along with S&R lines, channels are the main system. And in your post you said about multi-time frame set up. It is also useful. One shorter time and one long time TF. Thanx for your comments here.

Debarghya, I'll try and get through this post with no typos. I looked at my last post in your thread, and I'm thinking, "I need to take an English class."--lol.

The stochastics oscillator is the one I use as the most nominal part of my methodology, but as a confluence with other indications, it is very useful.
Personally, of all the oscillators, it is my favorite because it gives the truest OB/OS signs, the truest divergences, and I think it is the best momentum indicator of them all.

One of the reasons you need a confluence in order to signal an entry is that PRST made an interesting point. The answer is "no", you do not enter long if it is OB, but you could still get another strong spike in the same direction.
This is where using other TF's come in handy and are needful. I could conglamorate all the USD pairs from Friday's action, but I won't. I'll use just the EUR/USD as an example. It was forecasted all the respective pullbacks on Friday. In just evaluating the stochastics, it was highly OB on the hourly, 4-hour, and daily, but still pointing straight north on the weekly. Therefore, it is safe to say the market is going to make a correction of the larger trend only. There is no trend reversal, but a pullback within the larger scope of things.

Confluentially, there were many strong indications with all elements of the ichimoku, standard deviation channel on all TF's, and my proprietary S&R's to signal this temporary reversal.

In summary, I like to use the stochastics as a warning light. If it is OB on the hourly, then check the 4-hour to see what is says, then keep working upwards to see what kind of agreement you get. Check the confluences with other indicators to see what they say. Once the package deal comes together, then confidently enter your position and enjoy the price action in your favor.