Use with K.I.S.S.

I rely heavily on stochastic settings and although they aren’t 100% reliable, they are a good indicator for me. I set my # 12 tab up like this and I never touch this one...never!

I use the bottom stochastic to alert me as to when a stock is beginning to move (the fast line breaks up through the slower moving line. At this point the 3 day moving average will be just about ready to cross the 5 day moving average on the top chart. I then keep an eye one the middle stochastic chart. When the fast moving line crosses the slow moving line the stock will already be in an upward progressing. You won’t catch the beginning of a move but you’ll have confirmation that the stock is moving up. Once I’m in the stock I then begin to watch the bottom stochastic chart again. When the fast line begins to cross down through the slower moving line I’m getting ready to bail out. It’s not exact but its the closest thing I can find that seems to work relatively well.

Let’t take this one step further. Right now I have my program open and the stock ASF is on my screen. (I didn’t buy this one, it just happens to be on my screen right now.) If you set you chart like I have mine, then I want you to turn on your pointer and place it on 10/15/98, my signal point on bottom stochastic. Notice the relative position on the price chart and how the 3 day is about to cross the 5 day. Next place your pointer on 10/21/98. This is where I would enter. Now go back down to the bottom stochastic and place your pointer on 10/31/98. This is the point where I consideer getting out since the upward move is breaking down. Its not a perfect system but its the best I can come up with. I’ve put countless hours of experimentation and testing into these settings. I hope you all play around and try to refine them further. If so, be so kind as to share your results with the rest of us. This isn’t foolproof either. When it works, it works well. When it doesn’t, well, it just doesn’t. So be careful. Let me know what you think.