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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Debra Orlow who wrote (2107)12/16/1998 4:05:00 PM
From: set  Read Replies (1) | Respond to of 99985
 
> please go on....

yes'm.

on that chart, I use two stochastics of lengths 120 and 12 bars.
The longer one seems to have three states:
1) behaves like any other stochastic
2) stays overbought for weeks on end
3) stays oversold for weeks on end

During that latter two periods, you can typically trade
the shorter stochastic against the longer one.

However state changes create havoc and you end up trading
opposite the first two weeks of any trend. An macd with
values 11,50,9 however, will catch the start of every bull
run by breaking north in two stages with the midstep right
around the zero line. I looks like a cup and handle. These
buy signals are rare (only two this year) but they come at
the right time, just when the other model fails.

Shahar