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Fibo_Stochastic_Pesavento_jytv6

Fibo_Stochastic_Pesavento_jytv6
By JohnLast 2457 days ago Comments (2)

A very nice oscillator by Jaguar.  Stochastic oscillator based on golden number.

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От 22 септември 2011

Comments

  • CamaRon 2457 days ago

    Hey Jaguar!

    Excellent indicator. 

  • JohnLast 2456 days ago

    This indicator makes me think of THE "ANTY" strategy of Linda Raschke from its book Trade Smarts.

    This is a retracement pattern. It is about entering in the direction of a longer term after a pullback in that trend. 

    Accordina to Raschke the Anti pattern is one of the most reliable ways to use an oscillator for spotting a swing setup.

    Even if the instruments used be Linda are different the principle is the same.

    "The basic principle is that a short term trend will tend to resolve itself in the direction of the longer term trend. Two different time frames or cycles moving in the same direction create a condition called "positive poolback.  This in turn creates some powerfull explosive moves".

    For the setup the trend will be defined as the slope of the Slow % D Stochastic (red line).

    1. We have a positive slope of the  Slow % D Stochastic (red line).

    2. The fast %K (blue line) has begun to rise along with the slow one. In fact any consolidation or retracement  causes the fast line to retrace toward the slower line.

    3. Enter when the price action acauses the fast line to turn up once again in the direction of the slow line. In that way the fast line is forming a hook.

    In fact we are looking for an established trend and we enter in the direction of the trend. However Rashke talks about strategies on the daily charts and shespeaks about trades lasting several days. 

    For more see Street Smarts by Linda Raschke and Connors p. 48