How to Create it:
1.) Use on a 15 candlestick chart for wider-ranging stocks or 1 minute chart for steadier stocks with less momentum and more volume like MSFT, AAPL and CSCO.
2.) Add Stochastic: %K (P=14)
3.) Add MA's: MA5 and MA15
The Signals:
1.) The Aggressive Long - Consevative Cover:
A sudden drop in the %K to 0 and an upward curving in the MA5.
This is first early signal indicating a bottom.
2.) The Conservative Long - Aggressive Cover
A crossing of the MA5 above the MA15.
This is the second lagging or confirming signal indicating a bottom.
3.) The Aggressive Short - Conservative Sell
A sudden sharp spike in the %K to 100 and a downward curving in the MA5.
This is the first early signal indicating a top.
4.) Conservative Short - Aggressive Sell
A crossing of the MA5 below the MA15.
This is the lagging or confirming signal indicating a top.
The SM could be:
For number one you get a yellow that says AL-CC.
For number two you get a green with CL-AC.
For number three you get a yellow AS-CS.
For number four you get a red CS-AS.
Could be a one button indicator to save space.
Works both ways. Want to tackle this one Avery? Then you could go to their site, tell them about it and get banned.
I think it would be a very good trade indicator. I wish I would have saved the chart image they had so I could post it for you. It looked like it would really work well.
If not maybe some one will find this info helpful. Cheers...
