"Anti" pattern
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Hi,
I would like to know if anybody has ever tried the Anti pattern technique used by Linda Rascke. It can be found here, but it's been updated I think in the Connors/Rashke Street Smarts book.
In short, the setup uses only the Stochastic (%K=7, %D=10, Smoothing=4) indicator. The rules for buying are:
- %D has established a definite uptrend
- %K has begun to rise along with the slow line
- a retracement causes %K to pull towards the slow line
- enter when price action causes the fast line to turn up once again in the direction of %D (forming a hook
- stop level: just below the bar of entry (can also be the last swing low)
- exit level: within 2 to 4 bars
The selling rules are opposite. I am including an example. It seems to be working on any pairs and any timeframes, at least visually. I have tried it on a couple of trades on a demo account and it looks quite promising. Comments are welcome.