$SPX - Chart Link- I talked about this chart
the other day, but the concept is simple, whenever a 60 Stochastic
is trending above 80%, the market is in a strong momentum uptrend
that can lasts months at times. You tend to only get small
dips/pullbacks and thus you might not get an opportunity to buy
reversion to mean pullbacks via standard indicator length settings
that don't have time to recycle to oversold. In these
conditions you can use fast length settings on indicators like RSI
2, %R 5, Fast Stochastic 4 etc.
Obviously the momo conditions don't last forever therefore your
stop out can be 60 Stochastic falling below 80%, the last higher
low on an intra day time frame etc.
anyway you can see the indicators signaled a buy the Wed and
Thur, and 6 tin total from Feb. last year you can see 5
examples from Aug to Sept
Momentum shallow pullback trrades buying dips
Posted by matt on 3rd of May 2019 at 11:06 am
$SPX - Chart Link- I talked about this chart the other day, but the concept is simple, whenever a 60 Stochastic is trending above 80%, the market is in a strong momentum uptrend that can lasts months at times. You tend to only get small dips/pullbacks and thus you might not get an opportunity to buy reversion to mean pullbacks via standard indicator length settings that don't have time to recycle to oversold. In these conditions you can use fast length settings on indicators like RSI 2, %R 5, Fast Stochastic 4 etc.
Obviously the momo conditions don't last forever therefore your stop out can be 60 Stochastic falling below 80%, the last higher low on an intra day time frame etc.
anyway you can see the indicators signaled a buy the Wed and Thur, and 6 tin total from Feb. last year you can see 5 examples from Aug to Sept
nice system
Posted by shecar on 3rd of May 2019 at 02:56 pm
nice system