|
PureBytes Links
Trading Reference Links
|
Thomas,
Thanks for your stochastics analysis. I don't use stochastics myself
since I've found that while they give very good signals when they are
right, they tend to give too many false signals. However, I firmly believe
that the important thing is to have a system you are comfortable with and
follow it rigorously. Many systems work, but people give up on them too
quick <G>.
The interesting thing, was that I didn't have Novell in my database,
but took a quick look at it on Telescan and liked what I saw. Then I
checked the fundamentals on Telescan and they looked pretty good. I
downloaded the stock and drew trend channels. NOVL had a series of
progressively steeper down trend channels until Friday. It set an all time
low in late June. On Friday, it broke out of the short term down trend
channel from the Feb 97 high on fairly good volume. While it has a series
of longer term down trend channels to break out of before there's clear
sailing, this would be a good bottom fishing candidate. It's a little on
the speculative side since we would be trading against the direction of the
longer term trends, but a position here with the stop set at 6 1/4 could
have a good pay off.
Jim
----------
> From: Simianer <Simianer@xxxxxxxxxxx>
> To: metastock-list@xxxxxxxxxxxxx
> Subject: Stochastics Buy Signals
> Date: Sunday, July 27, 1997 1:00 PM
>
> Hi all,
>
> i have been following the list for about 7 months, now i decided to send
my first
> contribution to share some ideas with you (and may be get some feedback).
>
> Trading the stochastic seems to be not very common. I developed a system
based on it to find
> promising stocks, that works quite profitable - at least on the long
side.
>
> Iīm using the following stochastic-template:
>
> %K = 5/3, 15/9 and 25/18, all with %D = 3
>
> Then i search for shares with the %K=25 crossing above its %D. This
should happen below the
> oversold-level of 20, or at least below 50.
> At the same time the 15/9-stochastic should be in an uptrend and ahead of
the 25/18.
> The 5/3-stochastic should also be climbing and have the highest value of
all.
>
> These are the conditions for an exploration. The stocks meeting these
conditions will be
> analysed with other indicators (iīm using mainly ROC, Stochastic RSI,
MACD, KST ).
>
> Sometimes you get a buy signal of two stochastics, but the third doesnīt
fit.
> In this case wait, until all three turn to the same (upward) direction.
> This very often indicates the best point to buy after a last downward
move.
>
> One very good example i got from my yesterdays exploration: Novell.
>
> At June 26, Novell saw itīs lowest value of the last 5 and a half years
($6.60).
> June 30, the stochastic 25/18 had a crossover (value: 17), but the 15/9
was even lower (14).
>
> Novell moved up to $ 7.50 before falling back to 6.70. Then it built a
bottom before
> starting a climb again. Friday it close at 7.12, producing the awaited
second crossover of
> the 18/9-stochastic.
> Now all three stochastics are pointing upward and on most other
indicators you can find
> bullish divergences and trendline-breaks.
>
> I will buy tomorrow some Novell at the german market, and if the
resistance line at about
> 7.15 gets broken, i will continue buying.
> My stop will be at 6.80, where you can find the support-line of the
present up-move.
>
>
> Now itīs your turn, to give some criticism, suggestions for improvement
or any other
> feedback!
>
> Greetings from germany
>
> Thomas
|