The “report post” buttons aren’t working right now. Pipcrawler said they’re working on fixes. He also said to feel free to PM him about improper posts.
If D1 stoch is in the OB area but did not cross down the 76.4,
is the current up trend still intack?
will it be safe to be looking for long trades in H4 (cross 23.6)?
seems like in a strong trend, D1 stoch will remain in OS/OB area for days.
ramrocket, if you’re going to enter trades on the H4, you will want to be checking the daily charts, and it looks like you understand that. But in addition to the stochs on the daily, you also need to look at the moving averages to be sure that they are confirming the direction of trend that you think exists. Don’t be affraid of checking an even higher timeframe either.
If the stochs are in an overbought/oversold area, just be aware that they may drop out any day. I think the best time to enter a trade would be when the MA rainbow confirms trend direction, and both the timeframe you’re trading and the two timeframes above that are all about to break out of the respective overbought/sold area.
On your GBPJPY chart, yes, the daily is oversold and the MA raindow is down. On the WEEKLY chart, the pair is bullish for the MAs, but we broke a previous weekly low with last week’s candle. Also, the stochs are very low. As far as the weekly goes, we could be on the verge of trend reversal, or we could be creating a bottom right now. Does this matter for trading the H4? Maybe.
Try it, record your observations and what happens, and learn from your mistakes. I don’t think I feel confident enough to trade the GY with this system in the GY’s current condition, and I’m perfectly fine with that, as there are many other pairs.
Oh yea, I was definitely waiting on that. However, there is such a tight rope on the EUR/JPY daily that I cannot resist to go long. In this case I am actually following Spudfyre’s method because it’s a very nice tight rope. It also looks as if we have seen the bottom of the rope. If it wasn’t such a tight rope I would still hold off and wait for the rope to cross above the 23.6 line. This is why I haven’t entered the GBP/JPY yet.
Forgive me for adding to your quote, but I think the added bold is an important part of spud’s original method 
Also, update on GBPJPY weekly, I can’t believe I didn’t see that HUGE head and shoulders pattern before. Watch out!
Haha…very true! Thanks Cosgrove…
Good call on that. If you look though, the price has already broken the neckline and stochastics are oversold. I think it’s too tricky to call right now. Thanks for pointing that out!
++++ Updated ++++
I’ve updated the multi-timeframe stochastic threads indicators. There was an issue with displaying the Timebar 0 value for the longer term charts.
For original description see:
http://forums.babypips.com/free-forex-trading-systems/8730-ingots-rainbow-position-trading-strategy-13.html#post34654
So, I’ve read through all the posts and found everything extremely interesting. I pulled MT4 and found that (if I got everything correct) the EUR/JPY is indicating a that a good point to buy may come within the following days (on the daily charts). The HT indicate an ascending chart with resistance at the 166.96 level (~600 pips away). I’m just seeing if I understood correctly all the things I have read on this thread (I’m a newbie). Thanks again to all.
I have been taking a brain break from my naked chart learning and found this thread. I thought I would load up these on my charting to see how it would look but I cant go below 2 on my d setting for stochiastics. I saw in the original mtf posts that the original poster was using 3 for his settings. Will 3 work? Is there a important reason it has been changed to 1? Thanks
We changed it to 1 so that we would only see one line on the chart and not the two signals crossing over each other, etc. If all else fails, you can always get a demo account and catch the signals there to input into your broker’s platform.
I’m also long EURJPY with 250p SL. Weak signal but we still got one, read 23.65 on my chart.
I put it in with the 3 and it seems to look fine. I even backtested a ways and was 100% in trade accuracy. However I dont see a EUR/JPY signal anywhere in the last day few days.
Since it was barely a signal, I bet some people didn’t get it, which is fine. People always say that things like that average out over time, and they don’t really matter, but where’s the proof to that?
Anyway, if your charts look like the majority of the ones posted in this thread, I wouldn’t worry about it.
I’d have to disagree with you about the signal. Yes, there was a cross on the daily chart – But the weekly trend was still in downtrend. we need to have multiple charts agree.
The EUR/YEN signal was quite weak (but i jumped in anyway!). Probelm (if it is one) at the moment is that, with so many pairs strongly moving in the direction of their LT trend, there are no signals using this approach (as we need to wait for a pull back and then entry when the LT trend starts again)
This means that if you are used to more frequent trading, it is a discipline in itself to sit by the side.
Looking a few days ahead, there is the possibility of a switch back to the downward trend for USD/CAD so a possible shorting opportunity?
I have to agree with you there. I was thinking about it this morning, and I went back and checked my trades so far. All the losing/breakeven trades on the daily so far have been against the weekly stochs.
The winning trades have also been against the weekly stochs now that I look at them too; however, the ST stochs showed signs of turning around when I entered profitable trades.
Greetings,
I’ve been following this thread closely and have downloaded everything I just have to install it tonight… I’m at work right now and due to firewall restictions I can’t get it working.
Wanted to know… on average how much time do you guys spend working with your charts per day? 2-3 hours, 5 hours?
Cheers
Once you’ve got set up and know the pairs you are watching then i’d say around 1hr per day would be more than enough to examine the charts and monitor any potential trades. This system is a much longer term set up so if you are spending 5hrs per day (plus working!) then that would seem excessive.
A i said in my earlier post - the hardest part i am finding is patience to let the trades develop. A good example is the EUR/YEN which i’ve been stopped out on by the big spike caused by the falling markets! As others have pointed out that probably wasn’t a valid trade - still, you live and learn.
The first few weeks you will probably pour over your charts and their multiple timeframes for an hour or so, but now I probably spend 20 minutes every day around 6pm looking at them.
cosgrove,
where in the world are you? I’m in Toronto canada so EST GMT+6 or -6 (I can never remember…) same time as NY