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  • Does the Stochastic Analyzer use the TD Ameritrade Think or Swim platform?
    Yes
  • Explain the three modes
    Max Values - A measure of the best performance and probability that can be achieved. Back-Test - A measure of the average performance at 100% probability. Trade Mode - Directs the user when to open and close a position.
  • How do I determine a good Buy signal from a bad Buy signal?
    By referring to the Long & Short Probability and the Long & Short VAR (Value at Risk). Other important values are Expected Profit, Win-Rate and Total Profit.
  • Are commissions and spread factored into the profit?
    The spread is automatically calculated and the commission is manually entered into the Inputs.
  • Why does Forex always show a loss?
    Check Type (Inputs) for Forex selected. Increase the Forex Units.
  • Explain Select Strategy
    Single Confirm Buy - When %K and %D cross and are above Overbought (or below Oversold) then a Buy signal is issued. Double Confirm Buy - When the %K crosses below the Overbought (or above the Oversold) and %D is above the Overbought (or below the Oversold) then a Buy signal is issued. This is often a less profitable strategy but safer. Both stratigies should be verified in the Back-Test Mode.
  • How can I get a audible alert for each buy and sell signal?
    Change the Trend Alert to Alert On.
  • What is Absolute True Strength (ATS)?
    A measure of the trend strength.
  • Can I plot the ATS?
    Yes, change Show Absolute True Strength to ATS_10x, ATS_100x, ATS_1000 or ATS_10000x. This is a very important leading indicator for change in trend direction.
  • What is Value at Risk (VAR)?
    Is a measure of the risk of investments based over a time period. For this application, it is the percent of time that the trade showing a loss.
  • Can I plot the VAR?
    Yes, you can plot the total VAR, the long or short VAR.
  • What is Average Percent True Range (APTR)?
    The Average True Range (ATR) is a measure of volatility. APTR is the the ATR converted to a percentage for comparing different stocks on the same scale.
  • Can I plot the APTR?
    Yes, change Show APTR to APTR_10x, APTR_100x or APTR_1000x.
  • Can I back-test with sell and stop limits?
    Yes, change Use Limits to Auto or Fixed. The auto sell limit is calculated a 1 x APTR and the stop limit is calculated at 3 x APTR. The fixed limits are adjustable.
  • Can I change my stock portfolio amount?
    Yes, change the Stock Dollars to the new amount.
  • Can I change my Forex amount?
    Yes, change Forex Units to the desired amount.
  • Can I change the commission amount?
    Yes, change the Trade Commission to the desired amount.
  • What is the False Signal Filter?
    A Absolute True Strength algorithm to reduce false buy signals. The filter is off when set to 0.
  • How can I determine that I am getting the best performance?
    By selecting the Max Values Mode and adjust the %K Period, %D Period and the Slowing Periods. Also try different Smoothing Type settings.
  • Can I plot the Tick rate in Forex?
    Yes, change Show Tick Counter to yes.
  • Can I plot the Spread in Forex?
    Yes, change to yes.

FAQ for Price Action Trading

• Is the Think-or-Swim platform supported?  Yes

• Is Forex supported?  Yes

• What are the filters for?  To improve the profit and Win-Rate

• Is only one filter allowed, or multiple?  Multiple

• Why use the T3 Moving Average over the standard MA?  It is more responsive.

• Can I improve the T3 Moving Average Response?  Yes, adjust the Period and Volume Factor.

• Why does the T3 MA color change from green to red?  Green indicates uptrend and red for downtrend.

• Can I improve the retrace filtering?  Yes, adjust the Signal level up. 

• When does the reversal end?  When the strength reaches zero.

• Does the trade close when the strength reaches zero?  Depends on the filter selected.

• When does the reversal start?  When the orange arrow appears on the T3 MA.

• When does the trade start?  When a large arrow appears on the ramp at the signal line

• Where is the Profit Line?  At the bottom of the chart near zero.

• Why does the Profit Line change color?  White for no transaction, green for profit and red for loss.

• What do the symbols on the Profit Line mean?  Square for transaction entry and triangle for transaction exit.

• When should I avoid trading?  When the strength (at the bottom) is in the red.

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