Part 17 - Next stage in signal selection

We now have our double top we have found this using the methods in section 16.

• We used the stochastic peak to determin the high candle




• We made sure we had a difference in the 2 highs of no greater than 5 ticks

We have now found a strong market pattern in its own right ..a double top .. this will give our signal a greater chance of success.We now have to go back to the stochastic momentum which I will now call the SM and use it to creat another part of the signal.

The way we use the SM is called Diversity which basicaly means that if price has made a technical top double top or higher high but the SM has made a lower high it shows weakness in price and the price may well be in a position to drop.

What do we have right now... we have a techbnical double top..lets now look at the SM.

See the chart below

Things left to be added to this blog.

1. Colour candle
2. How I use the macd
3. How I use the fast stochastisc
4. My exit and go flat
5. Reverse long to short.. short to long
6. When to ignore a valid set up ..candle size ,distance from ma
7. What stop to use

And most important ...

My bank account number for donations... heheheheheheheh