Spydertrader's Jack Hershey Equities Journal II

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Some Chart comments/analysis Please!

The left is daily and the right is a 30 minute chart.

Considering the daily is in a clear downtrend, there was no FTT, but some potential bottoming volume pattern each time it hit the lower daily trend line ( yellow ).

Now onto the 30 minute chart - Would you buy the first or second time the
right trend line was reached on decreasing volume? Does it matter if the daily chart
is not in an uptrend during the first or possibly second hit of the 30 minute chart
right upward rising trendline? Assume that all of the Hershey TA criteria was fullfilled each time the price hit the trend line.

thank you
 

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Quote from mischief:

Nice day in the office today.

CNTF STOCK New
[...]
BOT 500 ENG STOCK
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I got these volume alerts as well, but passed because the daily stochastics numbers were well below target values. They look like they've done well for you, though, and they're certainly in a good part of the channel.

Did anyone else pass on these trades because of the stoch?
 
foible,

My understanding of the Hershey methodology is that there is no daily stochastic target. 30 min must be > 80 and that's the only stoch measure. I use 1 min bars to calculate the 30min stochastic using an Amibroker auto-script which is working pretty well for me.

Exited NCTY at 24.39 this morning and ENG for 7.67 because they both failed to make FRV. Still in CNTF, but not sure how long for, it's a bit all over the place.

Ah well, off to bed.
 
My understanding of the Hershey methodology is that there is no daily stochastic target. 30 min must be > 80 and that's the only stoch measure.


In the Hershey's video I noticed him monitoring, a list of stocks in realtime, unusual volume in QCHARTS. In his tape he also did a DAILY analysis of the charts drawing in channels, looking at volume and other TA studies such as Stoch. I assumed that the list of stock he was monitoring in realtime for unusual volume was the "hot list" determined by the previous day daily chart analysis.

I am not sure about the assumption that I made that the realtime list of stocks ( ie the hotlist ) came from the Daily analysis chart is correct. But if it is he definitly used the DAILY stoch as a screener for the hotlist.
 
Quote from 8833broc:

I am not sure about the assumption that I made that the realtime list of stocks ( ie the hotlist ) came from the Daily analysis chart is correct. But if it is he definitly used the DAILY stoch as a screener for the hotlist.
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Jack creates the Hotlist the night before. If you review the Oddiduro Thread, Jack discusses his methods for entry while monitoring on a 30 minute chart. If you use daily Stochastics levels for entry and exit, then you need to review Jack's Rocket trades and the 'Bruno R' set up. If you wait for Stochastics to reach the 80 level on a daily chart, you have already missed much of the move, and often, find yourself "buying the top" of the run.

Good Trading to you.

- Spydertrader
 
As promised, I have added the New Chartscript here. I have also attached a zip file containing the same information located in the linked URL (for those using Wealth-Lab Developer).

- Spydertrader
 

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I'd not enter long on a downtrending stock.
Quote from 8833broc:

... Does it matter if the daily chart is not in an uptrend during the first or possibly second hit of the 30 minute chart right upward rising trendline? Assume that all of the Hershey TA criteria was fullfilled each time the price hit the trend line.

thank you
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Quote from Spydertrader:

As promised, I have added the New Chartscript here. I have also attached a zip file containing the same information located in the linked URL (for those using Wealth-Lab Developer).

- Spydertrader
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Spyder,

Thanks for the new script for Bruno_R.

I see that every stock is closed after 8 days pass. But since you went to the trouble to calculate the Stop Offset value, how about changing the sell condition to also test that exit condition (in english)?...like

(Eight Day Stop) OR (Stop Offset caused exit)

I'd assume it can be tested to be better performing.

Jakeytrader
 
Quote from jakeyTrader:

I'd assume it can be tested to be better performing.
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The tests I ran did not show improved results using a 'stop offset' with this method. In addition, I tested 2% and 5% trailing stops without improving the win percentage or appreciably reducing the maximum loss. As a result, I left stops out of the sell conditions. I did not attempt to optimize the results using "Stocks coming out of Dry Up" as an inclusion parameter either. Each stock included in the tests found itself as part of The Final Universe during the period tested.

I also tested 4,5,6,7,8,9 and 10 day hold times, and found an 8 day hold provided the best returns. One thing which did improve the returns included using a Universe of Stocks which contained a 25% Insider (not institutional) Owned parameter - as written in the Chartscript Description.

I encourage everyone to test the method and make an effort to improve upon the stated results.

- Spydertrader
 
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