K39 - The Last Stochastic Technique
Most people are already familiar with the use of Stochastic as a momentum indicator. However, few may have heard of "K39 - The Last Stochastic Technique". This setup consists of two indicators:
1. Stochastic Oscillator, setting: %K=39 and %D=0
2. OBV and its M30 ( M30 = 30 SMA of the OBV )
A buy signal is generated when :
1. K39 line crosses the 50% line from below;
2. OBV line must be above the M30 line.
See green arrows in the chart.
A sell signal is generated when:
1. K39 line crosses the 50% line from above;
2. OBV line must be below the M30 line.
See red arrows in the chart.
For details, please refer to the website of StockChart.com ( click HERE ).
1. Stochastic Oscillator, setting: %K=39 and %D=0
2. OBV and its M30 ( M30 = 30 SMA of the OBV )
A buy signal is generated when :
1. K39 line crosses the 50% line from below;
2. OBV line must be above the M30 line.
See green arrows in the chart.
A sell signal is generated when:
1. K39 line crosses the 50% line from above;
2. OBV line must be below the M30 line.
See red arrows in the chart.
For details, please refer to the website of StockChart.com ( click HERE ).
Although K39 is a trend following indicator, it does generate very early and reliable signals ( see examples below ):
I have been familiar with this indicator for 2~3 years now but haven't been too serious about it. I will try to pay more attention to it from now on and will post here counters with fresh buy signals.
Labels: TA Indicators
posted by Market Wizards @ November 07, 2011
Comments: 0
