Nina and ALL!
After following and re-reading this thread for some time I am amazed by how much input there has been to constantly analyse, test and improve something soooooooooo simple......that merely started with a bare naked 50ema....like you say!!!
Yet you constantly stay open and encourage new ideas....so here's another one!! (btw How's CatFx16 coming along?)
I would like your thoughts on this simple idea:
You said
"you typically go to a 5min chart" to "fine tune" your exits manually off of supports and resistence and fibs and pivots....don't most discretionary traders do this?
To help our exits, I suggest we employ a 5min chart running in the background with
the following alert set up as the assistant to our CatFx50 30min charts.
The Simple 5min alert:
Stochastic 5;3;3 5min tf
We know, the standard Slow Stochastic is plotted as two lines called %K, a fast line and %D, a slow line.
• %K line is more sensitive than %D
• %D line is a moving average of %K.
and that the 80% value is commonly used as an overbought warning signal, and the 20% is used as an oversold warning signal.
BUT......I am finding the signals become even MORE reliable if you WAIT.
Try this: (demo of course!)
on an uptrend, enter the exit (or a reversal!), when the fast, %K line, is >95% AS LONG AS the slow, % D line, is <90%. ( if %D is above 90% it indicates considerable strength
may remain in continued direction).
on a downtrend, enter the exit (or a reversal!), when the fast, %K line, is <5% AS LONG AS the slow, %D line, is >10%...(same logic regarding remaining strength.)
OF COURSE..........EVERYONE use all other discretions/rules regarding support and resistance, daily trend, trading times, news events, candle formation etc. for exiting the trades (this use of the stochastic is meant to be HELPFUL to the "ART" of exiting NOT a mechanical answer to prayer!!
If this is helpful to our exits, we would simply need an alert signal for the slow stochastic indicator that is structured for the above.
It would simply trigger on the fast %K line equal to or greater than 95% and below 5% and run in the background while we moniter our 30 min charts!
If this is a bad idea then please just throw it out....and we will keep moving on polishing this "holy grail"
Thanks Nina
