In an effort to clarify any remaining misconceptions, I have posted the attached color-coded chart. As you can see, some traders often refer to the "Fast Stochastics" when referring to Stochastics (5,2,3). As a result, "Slow Stochastics" infers a reference to Stochastics (14,1,3). In addition, both settings for The Stochastic Indicator contain 'Slow' and 'Fast' Lines. We refer to the %K Line as the 'Fast line' and the %D Line as the 'Slow Line.' Depending which methods or trade 'set up' one follows determines which of the Stochastic Settings one would use. For example, When entering Long using Dry Up Volume for an equity finding itself "In Dry Up" from the previous day, one looks for The Stochastic Indicator (14,1,3) - %K Line - to reach an 80 level on a thirty minute chart. When following a 'Bruno R' set up, one looks to see a Stochastic (5,2,3) Crossover (%K Line crosses over %D Line) to the upside "in the 20 area" on a daily chart. One then looks for The Stochastic Indicator to continue on above the 50 level (%K Line) - breaching the 80 level and pulling back - also on a daily chart. Later, one looks to see 'intertwining' of the Stochastic Indicator (14,1,3) - both %K Line and %D Line - and above the 80 level in order to receive a 'Hold Signal.' Admittedly, confusion can develop when discussing various Indicator Settings across a variety of time frames (fractals). As such, I hope the above explanation provides some additional clarity for those still having any confusion. - Spydertrader <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1077380>
Thanks Spy for the clarification... I still wasn''t 100% clear on the conditions for the Bruno R setup, and you have cleared that up nicely... Kind Regards.
I'm curious about how to handle CKCM now. Do you wait for it to go back to DU and then wait for another run at FRV, or if, on Monday, it crosses LBDU early in the day and the stock & MACD line up, is that still a buy signal?
GS19, let me add my congratulations to your performance. Good to see more evidence of the validity of Jacks methods and Spy's fantastic contribution to helping us implement them... So far myself, papertrading the method, I am up 4.6% over the last 4 weeks, and could have been 10.06%, if not for one silly error and an untimely downgrade from a brokerage house on an active position... Doh! Am very pleased with the way things are going so far...
I recommend you exercise caution with respect to CKCM. While, over the years, I have traded many of these short term uptrends in downtrending stocks, the trade itself represents increased risk over a 'Normal' Hershey Trade. Ideally, we look for recent pullbacks in an uptrending stock. However, improved volume, rising MACD and a Stochastic (5,2,3) divergence at the level described by Jack's 'Bruno R' post places CKCM on my Watch List for Monday. I plan to watch for improved volume in the morning, but should I decide to enter into a long position, I plan to scale in slowly with smaller size at first. - Spydertrader <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1077970>
We interrupt this important thread for the following request. I need a visual picture of a hitch, a stall, and a high volume stall. Thanks to all the many readers of this thread. Best Regards Oddi