Yes. What I am getting at is this: You risk ending up a bitter failed trader trolling trading forums whining and pissing and moaning about how TA sucks if you do not take seriously the task of understanding the indicator upon which you have staked your trading plan. Stochastics is about range and where price is within a range. If you come to understand how it defines a range and how it calculates a value for price relative to a range then you will have the key to unlock the answer as to why @Handle123 says that once a reading of <20 occurs after a reading of >80, the indicator has "re-set." You may still be unable to find the lock into which to place the key, but you will have the key should you locate the lock. You seem to be looking for magic and there is no magic. It is the work of a disciplined directed intelligence that will bring about the understanding required to discover how to find and exploit a technical edge. You are still hopeful and so there is still hope for you. Don't be like these others who also gave indicators the Wizetrade "red light/green light" approach. You should be working toward understanding your indicator manipulates that data derived from price action. Making the attempt to understand that should help you better understand price action itself. And who knows? Perhaps you'll come to find that you don't need the indicator after all.
I think you are lacking that you have not learned Price action, Price structure, Price on monthly, Weekly, Daily, 60 minutes, 5 minutes and one minute charts, all have differences. Unless you know much about Price first, indicators will only confuse you. THIS IS why so many fail as newbies don't have a clue about price first. And then indicators can help. You mention a green or red candle but do you know what each bar means? If they didn't have a color, what would they mean?
I'm curious now about your most recent trade performance. You mentioned you backtested your trade method. If your recent trade performance within the metrics of your back test results. If not, is it trade method related or discipline related ? Simply, if you traded accordingly to your trading plan and your performance is less than your backtested metrics...its the trade method. Yet, if you're not trading accordingly to your trading plan and your performance is less than your backtested metrics...its the discipline and whatever comes with it. Last of all, what's current market conditions like now in comparison to the market conditions involving your backtested metrics ? (hint: the answer involves understanding the market conditions you're trading within).
@wrbtrader It is hard to accurately compare my recent sim performance with the backtested performance, due to the fact that I am not always available to take certain setups, due to certain commitments. Note I did have to miss numerous profitable setups .
Weekly Summary Profitable Trades 1 Losing Trades 2 Win Ratio for week 1/2 = 50% Cumulative Win Ratio 5/17= 29% Total Points for the Week -0.5
To me price structure is the past and Price action is current, last handful of bars. Past you know if it fell into parameters, and currently you trading based on back tested parameters.
This is one of those patterns which money management is key to avoiding losses by either not taking trade or reducing amount of time to show whether it is going to work out more quickly or better to get out fast, as in faster Time Stops. Megaphone Pattern.
Are you talking about candle analysis? I understand that if price closes higher than it opens , it means that bar is bullish. I know dojis mean uncertainty, dojis at the top of a trend can also signal price reversal.. Hammers are good reversal candles How far am I from the bullseye? @Handle123
"Hammers are good reversal candles" So this means you back tested this, what are your stats? There is like one pattern in all of candles that is worth anything and yet you will have to test al of them to find it, and yet so many people use them cause they are colorful, but what they really do is confuse you that much more, brain is spending more time dealing with the colors than looking at what is going on. Iwilldoit I think you at least 2-3 years away from real time as your education of market is very limited, what do you think and you need to be honest with yourself. Are you better at Math? What do you do for a living? Or what did you do? What is your degree in?