So up here at nose bleed territory, the 60 length Stochastic is
once again nearing the 80% level, remember this is a condition in
the SPY systems, ES Pro system, and BPT MA Deluxe, last time it
gave a short signal on the SPY, since it's getting close to the 80%
level again something to monitor.
The trade logic for the
trade is as follows: Go short if the %K on the 60
Stochastic has been below 80% for at least 30 bars, and gets with a
range of 77 - 80% and reverses down to cross below the
%D.
In order for this condition to occur need at least another up or
sideways day as %K is at 73.77%, then a reversal to get %K to cross
below %D
Posted by clearstream on 25th of Jul 2015 at 03:13 pm
BPT MA Deluxe update on the web site is showing 7/22.... I
thought it was supposed to update 5 min's after the
market. It has been my best contrary indicator
lately, heh.
sorry about that, it's been updated every day I just didn't
change the date.
remember to use the ATR as well, it's been a useful guide as
support and resistance or recently I mentioned how far price was
above the ATR indicator and was probably due for some mean
reversion back to it, and that's what happened last week
On the ES this 60 or 34 Stocahstic short condition is no longer
possible as %K on both the 34 and 60 Stochatic lengths are now
above 80%. The last short by this system was via the 34
length. I use both a 60 and 34 length for this trade
type.
I have to look it up, there's also an ATR trailing stop
involved, i.e. if price is below that it's more aggressive about
holding longer. For one it would stop out if %K went above
83%, so it's a tight stop if wrong. 2. Profit exits can occur
if RSI falls to a certain level or %K crosses back above %D, or
price goes below an ATR and then comes back above it.
The last short gave up some profit as it exited after the market
bounced, the best example of that trade is in May 2012, that was a
very nice one
so regarding the SPY system and the 60 Stochastic short, if the
market were to reverse from here that short trigger would trigger
as %K is now at 78.11%, so it's in the tight range. HOWEVER
price must pause and start to reverse from here on the daily chart
and close down say Monday, the %K needs to cross below the %D
basically to trigger.
Otherwise regarding that video I made yesterday, clearly that %K
on the 34 or 60 Stochastic lengths is something to monitor, as long
as it'a above the %D price will be strong, if it crosses however
something to note. Clearly it's not occurring yet
60 Stochastic 80% short trade something to watch
Posted by matt on 16th of Jul 2015 at 03:51 pm
So up here at nose bleed territory, the 60 length Stochastic is once again nearing the 80% level, remember this is a condition in the SPY systems, ES Pro system, and BPT MA Deluxe, last time it gave a short signal on the SPY, since it's getting close to the 80% level again something to monitor.
The trade logic for the trade is as follows: Go short if the %K on the 60 Stochastic has been below 80% for at least 30 bars, and gets with a range of 77 - 80% and reverses down to cross below the %D.
In order for this condition to occur need at least another up or sideways day as %K is at 73.77%, then a reversal to get %K to cross below %D
BPT MA Deluxe/ Update
Posted by clearstream on 25th of Jul 2015 at 03:13 pm
BPT MA Deluxe update on the web site is showing 7/22.... I thought it was supposed to update 5 min's after the market. It has been my best contrary indicator lately, heh.
sorry about that, it's been
Posted by matt on 25th of Jul 2015 at 03:37 pm
sorry about that, it's been updated every day I just didn't change the date.
remember to use the ATR as well, it's been a useful guide as support and resistance or recently I mentioned how far price was above the ATR indicator and was probably due for some mean reversion back to it, and that's what happened last week
On the ES this 60
Posted by matt on 16th of Jul 2015 at 03:57 pm
On the ES this 60 or 34 Stocahstic short condition is no longer possible as %K on both the 34 and 60 Stochatic lengths are now above 80%. The last short by this system was via the 34 length. I use both a 60 and 34 length for this trade type.
Interesting... How are you targeting
Posted by pinguin on 16th of Jul 2015 at 04:02 pm
Interesting... How are you targeting your exits? Dollar gain, or crossovers on the Stochastics?
I have to look it
Posted by matt on 16th of Jul 2015 at 04:06 pm
I have to look it up, there's also an ATR trailing stop involved, i.e. if price is below that it's more aggressive about holding longer. For one it would stop out if %K went above 83%, so it's a tight stop if wrong. 2. Profit exits can occur if RSI falls to a certain level or %K crosses back above %D, or price goes below an ATR and then comes back above it.
The last short gave up some profit as it exited after the market bounced, the best example of that trade is in May 2012, that was a very nice one
so regarding the SPY system
Posted by matt on 17th of Jul 2015 at 09:52 am
so regarding the SPY system and the 60 Stochastic short, if the market were to reverse from here that short trigger would trigger as %K is now at 78.11%, so it's in the tight range. HOWEVER price must pause and start to reverse from here on the daily chart and close down say Monday, the %K needs to cross below the %D basically to trigger.
Otherwise regarding that video I made yesterday, clearly that %K on the 34 or 60 Stochastic lengths is something to monitor, as long as it'a above the %D price will be strong, if it crosses however something to note. Clearly it's not occurring yet
Thanks. I'm always looking at
Posted by pinguin on 16th of Jul 2015 at 04:21 pm
Thanks. I'm always looking at better ways to establish exits on ES or any strategy. Thanks for sharing