Thanks for your reply.techst said:Sorry mate can't really help yah here, I rarely use the stochastics these days, I still find price the most reliable trading signal. I use the macd to show me when a stock becomes oversold. I'll then use price with a stock closing near the day's high. I may take a quick peek at the stochastic's after checking support, resistance, volume, my EMA's and the candles.
Techst.techst said:Not really, I haven't changed the concept of the system completely. I just use the concept in different ways. For example. I plot the 12,26 Weekly EMA's roughly on a daily chart as the 70-130EMAs. These areas are still marking an important area for a stock but i just view it on the daily as well. But I'll also scan stocks using weekly MACD's to look for moves like BT-As recent surge and the huge return of strength that we've seen in the banks and life assurance/insurance and other finance sectors since the latter part of last year. I think it's important not to be changing your parameters like EMAs, MA's ,indicators etc because what your really learning here is about price. And if you keep changing your settings your going to be viewing price in different formats. I like to keep the indicators fixed so that the price moves behind my settings or my market 'lense' as Schwager once pondered. Slow Stochastics has become less important for me as I've learnt and practiced the type of entry that i find profitable. So, I know what i want to see before i enter, and so I need a short term indicator like the stochastic less and less. I hope this makes some sense to you! Because it's hard to explain but makes perfect sense to me, ....probably only me though.
I the triple screen method is a great starting for any trader. But i found that it is only a starting point, reading other books and work on technical analysis and piecing things together to come up with something that works for you. I can also see how this method ties in with other theories and trading concepts. For example looking at Dow Theory which states their are 3 trends happening all at one time, the 13-15EMA's or short term ema's track the theories short term trend. then the 70-130EMA tracks the intermediate as does a daily MACD. Looking at Stan Weinstein's Weekly 30MA which signals a 'continuation buy' point which is along the same lines as an intermediate correction level.
This is all just techncial analysis, then of course once your in a trade you have to manage it effectively but not micro manage it.