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10.7
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Author:  nanningbob [ Fri Apr 04, 2014 3:21 pm ]
Post subject:  10.7
The fast sto is just like the weekly STO; early in the day its direction is not set. So it will bounce up and down a lot and I mean a lot at its decision point. I watched it get stuck right at its deciding point on the usd/jpy the other day and as price bounced up and down in a 10 pip range for a couple of hours. Some of you are going to go nuts and yell repaint, repaint, repaint, well not here you are not. The reason is the STO daily just like the STO weekly needs to set its direction for the day. So until it does it will bounce around at its decision point. However, once it is set, it will be set for the day unless you have a big reversal and you will want to know that too. So dont get excited, I already know, if you take a trade and it goes against you dont blame the very sensitive indi. It is letting you know that price action is not set yet. Any other setting will not give you that solid agree or not agree early enough for you to trade. There is no perfect read to a dead market or bouncing in a tight range. That is just the way it is so accept it. Once price moves in either direction the indi will set and you have your signal. There is another filter yet to cover you but that is tomorrow.
Author:  nanningbob [ Fri Apr 04, 2014 3:21 pm ]
Post subject:  10.7
So let's review the THREE STOs before we move on.

Weekly Stochastic (W2.1) RED LINE
1. It is set to the fastest settings allowed by Empty4.
2. W2.1 is a read of the present weekly candle letting you know if it is going up or down.
3. Once it is set it will stay on the top or bottom unless a big reversal happens.
4. Early in the week if direction is not set yet it will change up and down. This is not repainting this is lack of market direction.
5. Trading into the weekly candle is part of TOP DOWN TRADING. 10.7 is unique in that the higher time frames go first and then you enter with a slower indi on a lower TF.

Daily Stochastic (D2.1) YELLOW/GOLD LINE
1. It is set to the fastest settings allowed by Empty4.
2. D2.1 is a read of the present daily candle letting you know if it is going up or down.
3. Once it is set it will stay on the top or bottom unless a reversal happens.
4. The D2.1 is very sensitive so when price stalls and there is no candle direction it will constantly change positions up and down. Hopefully the JPY session will set the direction for the day and it will stick on top or the bottom for the rest of the day.
5. Trading into the weekly candle is part of TOP DOWN TRADING. However, not everyday is an up day or a down down during a week. Price may go up 3 days and down 2 or 4 days and 1day or ........... On days price is not going in the direction of the weekly candle we use D2.1 to tell us that so we dont trend trade that day.
6. D2.1 is a filter so you are not fighting dips/rallies in an uptrend/downtrend.
7. D2.1 is not used on daily time frames and higher. It is for 4H charts and lower.
8.10.7 is unique in that the higher time frames go first and then you enter with a slower indi on a lower TF.

Any time frame Stochastic set at 7 (STO7) BLUE or BLACK LINE
1. The STO7 is your entrance signal or better yet your signal to set up or not set up a trade.
2. It works on any TF so it will change from TF to TF. D2.1 and W2.1 do not change from TF to TF but remain the same on all time frames.
3. It gives 2 signals for buys. When it is below the 10 line and moves up past the 10 upward, that is considered a buy alert signal. You go look at the chart and decide whether or not you want to trade. It will also give a 2nd warning at the 30 line.
4. STO7 gives 2 signals for sell trades. When it comes down from on top and crosses the 90 it will give a sell trade alert. You will then check your charts and see if you wish to make this trade. It will also give a 2nd warning signal at the 70 line. This indi was designed to get you into a good spot to trade or at least look at a trade. I have found it quite reliable if you follow other signals with it.

This is what the indicator looks like when all is put together on the screen.
Author:  nanningbob [ Sat Apr 05, 2014 12:34 pm ]
Post subject:  10.7
Now I am going to explain the entrances into a trade. When I started writing yesterday we were on V.7 or 8 of this indi. We are now up to V.15 and we havent even posted yet. Milanese took this thing and has really run with it. The entrance parts are pretty much finished and we are now working on the exit parts. This is the easiest one to explain so I will explain it first. It is the 10.9 Daily trades the rules are very simple and easy to do. The indi will tell when you should consider entering and when you should exit. I will deal with exits after those have all been finished programmed into the indi. At present we are pretty confident of the entrances so here goes.

The indi is going to give you a bunch of choices depending on how you want to trade. 10.9/10.7 simple has two lines and a clean screen. The rules are:

The indi will issue warnings for all buy and sell trades.
10.9 BUY TRADES
1. Red line on top look to buy.
2. Buy when the blue crosses the 10 or 30.
The indi will only issue warnings at these levels if you have an open trade.
Exits
1. When the blue line goes to the opposite side.
2. Move SL up when line crosses 50.
3. Move SL up when line crosses 70
4. Move SL up or close when line crosses 90
5. Definitely close all buy trades when indi gives CSS close signal OR
6. W2.1 red line moves back down to the bottom

Big white boxes are your buy zones. Small white boxes is where indi will give you a warning to buy.
Author:  nanningbob [ Sat Apr 05, 2014 12:45 pm ]
Post subject:  10.7
10.9/10.7 exit warnings. These close warnings will be for all trades no matter which 10.7 version you use. I am not demonstrating the TMA angle change warning at this time but you will get that one also.

Exits Buys
1. When the blue line goes to the opposite side.
2. Move SL up when line crosses 50.
3. Move SL up when line crosses 70
4. Move SL up or close when line crosses 90
5. Definitely close all buy trades when indi gives TMA close signal OR
6. W2.1 red line moves back to the bottom

Yellow lines are exit areas after you get the cross 90 exit signal from the STO7

Orange area are exit areas after you get a signal that the W2.1 has reversed
Author:  nanningbob [ Sat Apr 05, 2014 1:05 pm ]
Post subject:  10.7
The indi is going to give you a bunch of choices depending on how you want to trade. 10.9/10.7 simple has two lines and a clean screen. The rules are:

The indi will issue warnings for all buy and sell trades.

10.9 SELL TRADES
1. Red W2.1 line on bottom look to sell.
2. Sell when the blue STO7 crosses the 90 or 70.
Author:  nanningbob [ Sat Apr 05, 2014 1:18 pm ]
Post subject:  10.7
10.9 EXIT TRADES

Some of these trades the exit warnings will come around the same time so they can be close together.

The indi will only issue exit warnings at these levels if you have an open trade.No open trade on a currency pair no exit warnings given.
Exits
1. When the blue line goes to the opposite side.
2. Move SL down when line crosses 50.
3. Move SL down when line crosses 30
4. Move SL down or close when line crosses 10
5. Definitely close all buy trades when indi gives CSS close signal OR
6. W2.1 red line moves back up to the top.

Big pink boxes are your sell zones. Small pink boxes is where indi will give you a warning to sell. Pink lines are about where your entrances will be made.
Author:  nanningbob [ Sat Apr 05, 2014 1:27 pm ]
Post subject:  10.7
10.9 Daily trades are very simple trades. However they take a lot of patience because you only get 1 or 2 trades a month and sometimes (like Feb.) price doesnt move at all and you can wait weeks for something to happen. However they can be rewarding to the patient. :cheer:

Review of 10.9 trade and indi set up.

BUY trades
1, W2.1 on top
2. STO 7 comes up from bottom giving warnings at 10 and 30 line
ENTER and HOLD
EXITS
1. STO7 hits the top OR
2. W2.1 goes back to the bottom

The indi sends warnings for all these events.

You can also use this to trade lower charts and the D2.1 is not used as a filter. STO7 entrance and exits are TF based. In other words whatever TF you are on that is the one the signals will come from. W2.1 however will not move and is the same on all TF and so is its signals.
Author:  nanningbob [ Sat Apr 05, 2014 1:29 pm ]
Post subject:  10.7
YEAH version 3.17, yes 17 updates in 1 week. We think we have the final product. :)

I am going to open a 10.9 thread for discussion of daily and weekly based trades only. It would be too confusing to discuss daily trades with lower TF trades since they will have extra indis and rules. I will also have the first 10.9 folder put there since it is the easiest. All my teaching will be from this thread because this version lays the foundation for the rest so I dont want to repost all this stuff again at 10.9
Author:  nanningbob [ Sat Apr 05, 2014 8:14 pm ]
Post subject:  10.7
OK 10.9 only activates 2 lines for warning W2.1 and STO7.

10.7 will activate the yellow line a be part of the formula for buys and sells. In other words to get a buy or sell trend signal the D2.1 has to agree with the W2.1 and STO7 must move up from 10 or 30 line. This will generate a signal. Here is my 10.7 screen but I have one final filter before a trade.
Author:  nanningbob [ Sat Apr 05, 2014 8:29 pm ]
Post subject:  10.7
Here are the 4 steps to a 10.7 trend trade sequence.
1. you get a buy trade warning
2. you set up buy outside the TL triangle
3. you set up your SL below TL triangle
4. You profit when price hits R area OR STO7 blue hits the top OR you use some other line
You can use Bollinger Bands, TMA, COG, xxx.000 or xxx.050 lines, S/R lines, etc etc. I like the blue to top or R area and be done.
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