|
PureBytes Links
Trading Reference Links
|
Thanks, Ron, for the clarification. The fact that you are using the
%K/%D crossover does indeed answer my question as to which stochastic
you were using.
In your example, you appear to be saying two things: first, when the
stochastic hits a high (> 80), it ought to waffle a few days before
turning down to signifiy a major market downturn; in other words, a
short mesa at the top of a stochastic peak is more noteworthy than a
simple peak and sharp downturn. Second, you are discussing longer term
(weeks to months) signals rather than shorter term (days), which I was
referring to with my question. The system I'm trading has an average
trade duration of 3 days. So, the example you give is not appropriate
to the situation I was addressing since I'm looking for an entry
signal qualifier. However, I suspect that by staring at charts for
awhile, an idea or application of this indicator might pop out that
could be applicable to shorter term situations (such as playing around
with the %K and %D length parameters). Thanks for taking the time to
answer my query.
Regards,
Al Venosa
On 4/23/05, mrdavis9 <mrdavis9@xxxxxxxxxx> wrote:
>
> Al, the attached chart of DJI is a good illustration of how a high level of
> stochastic can serve as a warning of a possible downturn that is more
> serious than a normal small pullback.
>
> The downturn that started about a week into September 2004, was preceded by
> %K having almost equal values for three trading days in a row, and on the
> trading day just before %K crossed DOWN through %D, both %K and %D were very
> close to each other in value.
>
> I consider this tight range of values to be a sign that the previously
> prevailing Bulls are about to lose to the Bears. Conversely, a similar
> situation of low stochastic readings can signal a possible breakout.
>
> This same tight range of %K and %D values also developed in the last third
> of December, 2004 just before a downturn.
>
> It might be a good idea to do nothing but stare at charts for awhile in
> order to more closely observe the interplay of %K and %D just before
> breakouts, and just before major downturns. Hope this helps. Ron D
>
> =============================================================
> Hi, Ron,
>
> I've been looking for a qualifier for my short-term system's long and
> short signals, and your idea seems to be a good one. There are many
> different variations of the Stochastic indicator. Which one do you use
> to qualify your long and short signals? I presume from what you write
> in your message that you use 2 different ones, one for an index, the
> other for the individual stocks you are trading. Can you give an
> example of how you invoke the Stochastic as a qualifier for your
> system signals? Thanks a million, Ron.
>
> Regards,
>
> Al Venosa
>
> Please note that this group is for discussion between users only.
>
> To get support from AmiBroker please send an e-mail directly to
> SUPPORT {at} amibroker.com
>
> For other support material please check also:
> http://www.amibroker.com/support.html
>
>
>
>
> ________________________________
> Yahoo! Groups Links
>
>
> To visit your group on the web, go to:
> http://groups.yahoo.com/group/amibroker/
>
> To unsubscribe from this group, send an email to:
> amibroker-unsubscribe@xxxxxxxxxxxxxxx
>
> Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service.
>
------------------------ Yahoo! Groups Sponsor --------------------~-->
In low income neighborhoods, 84% do not own computers.
At Network for Good, help bridge the Digital Divide!
http://us.click.yahoo.com/EpW3eD/3MnJAA/cosFAA/GHeqlB/TM
--------------------------------------------------------------------~->
Please note that this group is for discussion between users only.
To get support from AmiBroker please send an e-mail directly to
SUPPORT {at} amibroker.com
For other support material please check also:
http://www.amibroker.com/support.html
Yahoo! Groups Links
<*> To visit your group on the web, go to:
http://groups.yahoo.com/group/amibroker/
<*> To unsubscribe from this group, send an email to:
amibroker-unsubscribe@xxxxxxxxxxxxxxx
<*> Your use of Yahoo! Groups is subject to:
http://docs.yahoo.com/info/terms/
|