Trading Method On The Chart MTF Stochastic

[greencat]

I would like to share the system that I enjoy trading with and use for much of my trading. Lets start 2009 off in the green. I hope all of you enjoy this system as much as I do and I certainly hope it fills the bill making you some winning trades.

At the bottom I have a zip file with the indicator...

However, I must insist that using it on a demo account. Its the most prudent way to learn and become fimiliar with the way it works. Always wait till the time frame you are trading comes to an end before pulling the trigger. This helps prevents some surprises.

One trick I use with this system, that I do not point out on the charts, is as long as it ranging from the MTF channel is to pick some lots up when the stochastic dips on the upside/downside of the channel. When it first enters the outside I will play it for a bounce. Sometimes it turns on me and I make a real nice play on it. Other times it does not.

I DO NOT win everytime using this system-
Its imperative that if it turns back the other way and makes a stong move, get out of the trade. If we are trading in the direction of the trend we can feel some confidense that we are going to turn a profit.

Whatever the chart timeframe you are using remember: Higher Highs and Higher lows is a strong uptrend an the opposite for shorts. I do countertrend trade but I put my take profit at a resonable rate. Fighting the trend is a good way to lose it all.

Feedback is welcome good or bad...

This is the system I generally use to make the green. Its simple and just takes a little patience. This system is set up for 30 minute or higher charts. I do use them on the 15 minute charts with nice results. I also use them for overall market direction to help me on the 5 minute charts.

In a trending market there will be highs and lows, the white arrows point to entry points. Notice that normally it doesn't nail it on the dot but generates a high winning percentage. The crooked line denote the areas that it failed to break out of the other side of the MTF channel. These are good setups for trend trading and the probablity of making that winning trade is very high.

I dont have it on these charts but I incorporate trendlines when appropiate. They also serve as trend indicators and trend reversals. We also gets some head and shoulder patterns off the indicator which I have used very well for profit. I also use bar charts to keep the chart clean. Candles clutter it up. My other charts uses candles and there is plenty off time to check out the candle and see what it happing..

Happy New Year and I hope you like this way of trading..

This is off the 1 hour chart












15 minute chart.

[greencat]

Now to complete this system I have added stoch bars on the bottom. The chart is a 30 minute chart and you can see when the all turn green your chances of making money shoots uo pretty good.

There are other set ups like when 3 of them turn green. The higher the time frame the longer we are able to stay in the trade. It gets real tricky on the lower time frames.

You could also add one of your indicators that you are good with and probably make this an even better system.

[fguru]

Thank you very much for posting this trading method. It looks very interesting to me. I like to trade using MTF stochastic and I was searching for a MTF stoch bar for a long time and now I am very happy that I found it here. Thanks.