Roger, just found your thread. I have been using the stochastic indicator as my main buying tool for some time now. Sometimes I jump in a little to soon and I very often sell to soon.
At this time I am trading micro cap stocks listed on the NYSE (under $3). GLG was my last play. I like buying bottoms and the stochastic indicator is the only one that I can read very easily. When I see the stochastic bottoming, I start watching the general trend and some of the other indicators. Momentum usually verifies what I think I'm seeing but since they are measuring similar factors, I try to verify the bottom through the RSI.
The stochastic is also very useful in finding V-bottoms.
Some stocks I'm watching closely now are LSB, JII, SIA, ICF, NRD, LRT, MB, ABH.
Two I bought lately TTX and ABN (both are up).
Being in cash may be the most important part in using the Stochastic indicator. Two that got away lately SHN and WS.
I have been trading about 6 years, but I was still having trouble buying on instinct and losing my gains. In December I decided to write my trading rules down and stick to them. So far I am doing much better.
Good stochastic trading to all.
Tom |
