Matt, question for education, please. MA's are down
sloping and price was underneath the 5 and 9, so would you
anticipate a bounce to the 9? Or since the SLOW STO is so
oversold, would a several day bounce make more sense?
Thanks.
I haven't refined it down that much yet, though I think 5 and 9
too fast to use as slopes, any small pullback and those will
flatten out, you probably need to look at slope of 15 or 20 MA, if
that's positive then you are in very strong trend, if 20 MA is
negative and you've pulled all the way back to the 50, then look
for lower high. Again depends on the patterns at hand
etc.
also the 10 Stochastic doesn't always have to be oversold, 50%
level is also a support
Newsletter
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!
Matt, question for education, please.
DOW STOCHASTIC DAILY CHART TRADE SETUP
Posted by mdgfain on 6th of May 2016 at 03:05 pm
Matt, question for education, please. MA's are down sloping and price was underneath the 5 and 9, so would you anticipate a bounce to the 9? Or since the SLOW STO is so oversold, would a several day bounce make more sense? Thanks.
I haven't refined it down
Posted by matt on 6th of May 2016 at 03:20 pm
I haven't refined it down that much yet, though I think 5 and 9 too fast to use as slopes, any small pullback and those will flatten out, you probably need to look at slope of 15 or 20 MA, if that's positive then you are in very strong trend, if 20 MA is negative and you've pulled all the way back to the 50, then look for lower high. Again depends on the patterns at hand etc.
also the 10 Stochastic doesn't always have to be oversold, 50% level is also a support