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Strategies & Market Trends : Stochastics -- Ignore unavailable to you. Want to Upgrade?

To: current trend who wrote (487)	4/12/1998 8:32:00 PM
From: Wayners	Read Replies (2) \| Respond to of 927

That's funny you ask because I was just about to post it. If you use WoW here is the formula: (mov(c,peri,s)+std(c,peri,2)-(mov(c,peri,s)-std(c,peri,2)))/mov(c,peri,s) - ref((mov(c,peri,s)+std(c,peri,2)-(mov(c,peri,s)-std(c,peri,2)))/mov(c,peri,s),-3) I set "peri" which is the period to 12. I was going to post this For Jason because I know he likes to play dead cat bounces. What you can do is look for really high spike ups to the positive side to make plays that go against the underlying trend. I saw another guy on S.I. refer to this type of strategy as playing "dumpers" or "gainers". I've found that by looking at the slope of stochastics and the slope of bollinger band width, I can pick out major bottoms without even having the price chart in front of me. Pretty good huh? Her's the formula for the slope of a variable day stochastic. (ref(stoch(peri,3),0)-ref(stoch(peri,3),-peri))/peri When you have a really low spike down in the stochastic formula while you simultaneously have a really high spike up in volatility, you are likely at a major bottom and its time to play the "dumper" strategy and go long the stock or buy in the money call options.