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 Gold Customer
Joined: 3/22/2005
Posts: 17
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I have 3 questions, one regarding the stochastic and one regarding TSV and 1 regard the Envelope Channels
1. If the stochastic is over sold...moves up BUT NOT TO THE OVER BOUGHT AREA, and moves down again and then a signal bar occurs when it moves up above the 25 level...is your experience that it is a better setup than if the stochastic when from Oversold into the Overbought area (above 80)...then it came back down and up again to fulfill the long entry signal. It seems to me that going from one extreme to another extreme represents significant momentum that MAY adversely affect the type of entry that we are looking for..that being really a minor retracement within an initial momentum move. Any clarification would be helpful..
2. If the TSV on the 3 day Block setup (of this strategy) and the 2 day TSV are both not above the 0 line...would that cause you to be more cautious if the TSV on the 1 day TC2007 chart was in fact above the 0 line?....Would you anwer be any different if on the 1 day chart MS was not only above the 22 moving average, but also had penetrated the outer band of the Envelope Channel?
3. The video was for me abit unclear as to the exact rule that you look for regarding the envelope channel. I believe you want the MS to be above the 22 EMA...but looking at the charts a price move normally occurs when the EMA breaks the upper channel of the Envelope Channel. The problem is that when it breaks the envolope channel it may be a number of days after the Blocks signal occured. I know this is a process and nothing is exact, but getting some clarification regarding what part of the envelope should be violated by MS and if this occurs a number of days after the Blocks signal ...how do you read those tea leaves?
Thank you very much.
LD
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Administration
Joined: 10/7/2004
Posts: 31
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I find your questions confusing. It is clear you are getting bogged down in the intricate details. There ARE NO "exact rules." It is merely a methodology used to generate ideas for potential buy candidates.
-Peter Worden
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Gold Customer
Joined: 3/22/2005
Posts: 17
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With the greatest respect, your video set forth some specific guidlines...I (and some other people that I interact with) were just trying to clarify your commentary from the CD. I realize that trading is context, but we are trying to understand yours as a starting point for this type of analysis. Sorry if you feel this request for clarification is to minute...students dont always follow at the pace of the teacher.
Best regards,
LD
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