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Strategies & Market Trends : NetCurrents NTCS

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To: Doo who wrote (5628)2/11/2001 8:49:55 PM
From: macavity  Read Replies (2) of 8925
 
In all honesty I stumbled upon it as well.
I saw this guy (who is highly hard to read) and am guessing that he is doing something similar. I recognised a relationship with a few other things that I have seen

My take.
If you reckon that you can view a trend in your timeframe say daily, it can be described i.t.o. a stochastic over a longer period or higher time-frame.

Therefore if you look at say NDX at the end of january.
Weekly was bearish - stoch was well below 50
But Daily was overbought - stoch was above 85.
This was effectively a (bullish)pullback in a bearish trend.
The idea would be that as soon as the bullish daily cycle ended the weekly would continue (hence this downmove).

I do not understand his methodology as he uses the difference between the stochastic K% and the signal D%. I just use the level of the stochastic to guage where the price is in its cycle and whether it is rising or falling. Beyond that I am guessing.

-macavity
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