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Strategies & Market Trends : Technical Analysis- Indicators & Systems

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To: Chandler H. Everett who wrote (2366)8/3/1997 11:39:00 AM
From: Jack Landis   of 3325
 
Chan et al.....Here is a very interesting approach that can produce some nice short/long term gains.Works best on high beta stocks

Rule1:Wait until stochastics 8.3 plus 21.5 move <60 to >60
( a fairly significant down move has taken place)
BUY Signal

Rule2:Take EARLY SELL if (Diffs 8.3+21.5+34.8) <0
BEFORE (Diffs34.8+55.13+89.21)>0

Rule3: Take LATE SELL if (Diffs 34.8+55.13+89.21)<0
BEFORE 21 market days

Rule4: After 21 market days SELL when (diffs8.3+21.5+34.8)<0

Early SELLS give small gains and prevent large losses if move isn't strong.Once the longer diffs take over you are in for a very nice gain.

Look at some charts and give me some feedback!

Jack
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