follow up on this post: http://elitetrader.com/vb/showthread.php?s=&postid=1770806#post1770806 <img src="http://elitetrader.com/vb/attachment.php?s=&postid=1794494">
ET99, Thanks for posting chart. Have a question: At (C) on chart you say "if Stoch went above 80, then wait for it to return to below 80" This is what price indeed did at (C) Then at (e) you said "back to short when Stoch went below 50". At (e) stoch had previously gone to 80, so I am wondering why you waited until stoch went to 50 (instead of 80) before entering short? Was it the little uptick in price and stoch immeadiatly prior to major price drop that required you wait until stoch dropped to 50? Thanks Trayo
At (e) the 20sma is flattening out at the end of an uptrend. Waiting for stoch to hit 50 (instead of entering sooner) helps to confirm a return to downtrend.
10:06 on your chart being the rolling over of 20ma uptrend to downtrend. (e) on your chart is the turning of a (small) uptrend to downtrend. Refernce to Dow THeory being discerning the difference between primary trend as opposed to primary trend counter-moves...