Where to find an "over-reaction"/ "went up too far" indicator....

Have a look at Pair Trading at Wealth-Lab.com under strategies. That's the best overbought, oversold shell model program out there, and was written circa March 2000 in Active Trader Magazine. Requires substantial mods, but the shell indicator is in tact.
 
What did you have the period set to? I set it to 9 at 15 min interval charts and it seemed to do its job.

Quote from NoDoji:

When AIG hit 42.85 this morning, it "went up too far" on an "over-reaction" to news. The indicator that indicated this was the %K stochastic (indicating "overbought").

The incredible usefulness of this indicator was rapidly demonstrated by AIG commencing to run to 45.40, where it clearly "went up too far" on an "over-reaction" to news.

This sturdy and loyal indicator once again came to the rescue at 46.15 when AIG most certainly "went up too far" on an "over-reaction" to news.

And let me just say that at 49.94 the ever-ready-to-serve %K stochastic indicated that AIG had indeed "went up too far" on an "over-reaction" to news, but by then your short position may have been just a bit under water :p
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Quote from mtp666:

What did you have the period set to? I set it to 9 at 15 min interval charts and it seemed to do its job.
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I use 3 min charts and I only use stochs to guide exits and very occasionally entries in a range or a trending range. I actually didn't trade AIG today, though when it drifted down slowly after the first 2-leg run up and consolidated it looked like a good long and I'm still regretting not buying it at that point.
 
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