The point at which you currently find yourself with respect to reviewing the Original Journal, the DU5, DU10 & DU20 equations do not compare to our current method of Dry Up Volume calculation. You are comparing apples to oranges. As you progress with your review, you'll see the complete explanation describing the rationale behind using a 'range' of dry up values, as well as, the statistics behind the methods. The resulting changes provided an increase in trade signals without significantly increasing the number of False (Failed) Breakouts (FBO's). In addition, using a 'range' of values may very well, as you suggest, capture the volume levels that exist on the day "just prior to" the 20% run in price. Ideally, an automated method which exactly mirrored Jack Hershey's 'eyeball' method (see Oddiduro Thread - previously linked) should provide Dry Up Values which resemble the Hershey Eyeball Methodology. - Spydertrader
OK. Thanks. http://www.elitetrader.com/vb/showthread.php?s=&postid=774369&highlight=Stochastics#post774369
ilganzo and martys please accept my appologies for giving the incorrect information. I have been using the %D line as my trigger and maybe if I use the K line that will improve my success. Sincerely Gooch87
Final Universe Update The following stock has been ADDED to the Final Universe List as of 2005-11-17: AQNT. - Spydertrader
No problem. If you didn't point out, I wouldn't know I should be using slow stochastics. Thanks. Actually I did search the old journal to confirm.
I have a similar list with a few comments: RATE: I think the highband must be > volume and my data doesn't show this for RATE. TIE: I think we are supposed to be < $50. TIE is currently at $51.25. I'm not sure if this should qualify or not; maybe it's grandfathered in. CMCO: I use a different system (AmiBroker; still in progress) for generating my data/list and it has CMCO just getting above .20 a total of 5 times. WealthLab only shows 4 but it's close and meets the other criteria and might be worth watching. Also...per my note yesterday I am at least "watching" stocks that have 20% runups at least 3 times. Additional stocks that have at least 3 runups (instead of 5) include CWTR (4), FOXH (3), GFIG (4), LUFK (4), OS (3), PDC (3). I have no data on whether these will perform as well or not. Mike
Data Source variances occur from time to time. We have seen this many times in the Original Journal. When TIE found its way into the Final Universe List, it traded at a price below $50.00 USD. Although it currently trades above our cutoff, it is (as you say) "grandfathered in." Jack calls such equities "Tenured Stocks." However, should a Tenured Stock lose its rank (without reacquiring it before month's end) I remove said equity from the list. With a current score of zero and volume decreasing over the last few days, CMCO might be setting up for a run higher. Of course, anything can, and often does, happen, but it costs nothing to monitor. Let us know how the results of your analysis turn out. - Spydertrader