(This is Part 12 of a series. Go back to Part 11.)
Note that here in this chart of monthly Crude Oil which we've seen previously, the STX has moved itself a little away from the market because of the market's volatility, in order to protect the trader's opportunity in the trade. So this may be a good place to comment on the STX dial:
If the Automatic input of the STX is set to “true” then all sorts of things are being handled for you behind the scenes. Nevertheless you still have some degree of manual control, in that you can set the dial anywhere between -3 and +3.
Note that, if you want to be more aggressive in a trade, a negative STX dial number tends to reduce the distance between the market and the STX, whether the market is bullish or bearish. In this instance, a negative dial number, say -1.5, would move the STX closer to the big move in the Crude Oil market. On the other hand, if you want to be more relaxed in the trade, a positive number, such as +1.0, would tend to increase the distance between the market and the STX, whether the market is bullish or bearish.
If you set the Automatic input to “false” then it’s like using a stick shift in a car. When you manually shift, say, from second to third gear all manner of things are being automatically handled for you, such as the precise timing and amount of fuel being injected into the cylinders. The STX on “manual” is no different—all sorts of things are still being automatically handled for you behind the scenes even though you’re “manually” controlling the indicator.
The manual setting (Automatic set to “false”) is primarily for those who enjoy venturing out into experimental realms. From the factory the STX setting is on Automatic, and most traders will probably want to use that, with perhaps an adjustment up or down according to their taste for risk.
"I showed Ocean Plus+ to a friend today who is an avid trader and he was actually blown away by the software...It's kind of like the Tao of the markets come to life on the screen! Ocean Plus+ is not merely profitable (is it ever!) but it makes market analysis an absolute joy!"—R.M., New York
—jim sloman
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