[1] What exactly about the stochastic turn makes it a death blow, i.e., is it when it turns down from just above 50, or when it turns down then crosses its trigger, or what, precisely?
augie....think of it in the most simple way possible...
a stoch coming up from oversold 20 area and hitting the 50 line...and turning back down is a "bad" thing....shows extreme weakness...lack of buyers....
a stoch in overbought up near 80 turns down....hits that 50 line and bounces back up...is a "good" thing.....shows extreme strength...sellers have dried up...more buyers coming in....
a stoch that runs from oversold 20 to overbought 80 and turns right back down and heads to 20 again is likely just a "pump and dump" run....
example.....strength... i call them 50 bounces....thats seen in many great bull moves.....thats an overbought stoch near 80 turns back down and stops at the 50 line and heads back up....
the great bull run in 1999-2000 came off a 50 bounce on the full stoch weekly charts....you can see it plain as day...
look back at july and august 99 on the full stoch...two back to back 50 bounces....
stockcharts.com[h,a]waclyiay[d19990419,20000519][pb9!b13!b20!h.02,.20!b200!b150!b50!f][vc60][iUb14!La8,17,9!Lh5,5!Le5,10,1!Li10,10!Lp14,3,3!Ll14]&pref=G
and then the slow stoch joined the act in sept 99 with its 50 bounce.....
its a strength indicator pure and simple....look at gold stocks...DROOY....$HUI....BGO....any of them....put them to the test of my 3 stoch's....and see how many "bounced" on a stoch 50 line and went into a big run..
now if bounces at 50 and turning up is strength....
obviously the opposite would be hitting 50 from below and stopping and turning back down....
now the great bull market as i just showed started off bullish 50 bounces....
guess what...it ended on the opposite signal...which i call the death blow....
check this chart....
stockcharts.com[h,a]maclyiay[d19990419,20020519][pb9!b13!b20!h.02,.20!b200!b150!b50!f][vc60][iUb14!La8,17,9!Lh5,5!Le5,10,1!Li10,10!Lp14,3,3!Ll14]&pref=G
you can see nasdaq was under a death blow in july 2000 on the slow stoch monthly...and again in july 2001
anyway....these signals are on every stock chart you can look at.....
find a stoch coming down and hitting 50 and bouncing up....look at the price....high probability it rose...
find a stoch going up and hitting 50 and stopping and turning back down...look at the price..high chance its tanking...
there really is no trick to this....its so obvious by just looking at many charts and looking for it....the effect it has on price is plain as day....
once you start looking for it....over time and seeing it many times...you will get a "feel" of whats coming.....
2] I've noticed that you use non-standard settings on some of your indicators, like the 5,5 slow stoch, the 10,10 fast stoch, and the 8,17,9 MACD. They seem to give quicker signals than the plain vanilla default settings. Is that why you use them?
i don't want to see what "everybody" else is looking at...i want to see what others are missing....<ggg>
thats why i watch for P&S...death blows...stoch 50 bounces.....things most others don't even know exist.... |
