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2018issue C0926-27

Combining a weekly stochastic, a long moving average, and two-day resistance

The archive assigns a 70-day weekly stochastic the job of marking medium-term trend and pairs it with a daily stochastic to sort long versus short opportunities. Editorial reading treats that weekly print as a bias question, the 200-day simple moving average as a trend-state answer, and a two-day cup rim as a location test, so an oscillator extreme is discarded unless price has already left the prior session range.

  • A 70-day weekly stochastic marks medium-term trend, and pairing it with a daily stochastic is the method given for sorting long versus short opportunities.
  • The weekly and daily stochastic pair is required to be read with support and resistance and with moving averages, not as a standalone trigger.
  • A cup breakout taken alone is treated as incomplete unless the cup forms above the prior day's high, so the same event also clears a two-day high.
  • The intended trigger is a move through the cup rim after that rim has formed above the prior session high. Entries inside the prior day's high-low range are described as the least useful location.
Entries in this reading3 entries
Current trackStochastic oscillator170 readingsSupport and resistance170 readingsMoving average449 readings

How the pieces were assigned

The archive assigns a 70-day weekly stochastic the job of marking medium-term trend. Pairing that reading with a daily stochastic is the method given for sorting long versus short opportunities.

In an uptrend, a weekly oversold print is framed as a possible correction or reversal cue. In a downtrend, a weekly overbought print is framed the same way.

Editorial reading treats the weekly print as a bias question, the long moving average as a trend-state answer, and a two-day cup rim as a location test. On that reading, an oscillator extreme is discarded unless price has already left the prior session range.

Slow stochastic construction

The construction uses the slow stochastic with three-day smoothing so overbought and oversold prints are less jumpy. Lookback settings still depend on style and timeframe. The longer 70-day reading is assigned medium-term bias. The daily reading is assigned shorter-horizon timing.

Trend state on the long moving average

After a weekly stochastic returned to overbought, a bullish cross of a 200-day simple moving average and a later resistance break are listed as the confirmations that the medium-term trend had turned.

When the daily stochastic moved back to oversold, the same 200-day simple moving average is described as beginning to decline. The archive ties the oscillator and the average together as a joint state.

Location on a two-day high cup

A cup breakout taken alone is treated as incomplete. The added condition is that the cup forms above the prior day's high so the same event also clears a two-day high.

The intended trigger is a move through the cup rim after that rim has formed above the prior session high. Entries inside the prior day's high-low range are described as the least useful location.

Cup height is constrained to less than half of the prior day's range. Smaller cups are preferred. Rising volume on the right side of the cup is listed as extra confirmation.

Puxin ADR two-day cup breakout, 1-minute candles

On the 1-minute Puxin chart, price stalled near the prior day’s high around $22.20, formed a shallow bullish cup just above that level, then broke the cup rim near $24 and ran toward $29. Levels were read from the plotted candles and the article’s stated $24 / $24.50 / $29 marks, not copied from the page layout.
On the 1-minute Puxin chart, price stalled near the prior day’s high around $22.20, formed a shallow bullish cup just above that level, then broke the cup rim near $24 and ran toward $29. Levels were read from the plotted candles and the article’s stated $24 / $24.50 / $29 marks, not copied from the page layout.Puxin Ltd. ADR (NEW) · 1-minute candles over two sessions · 2018-06-15T00:00:00.000Z to 2018-06-18T00:00:00.000Z

Digitized from the 1-minute candles on 15–18 June 2018. Intraday x-values are minutes from 09:30 ET; y-values are approximate closes in dollars per share, limited by raster resolution. The source also states cup resistance $24, entry $24.50, and a later high near $29.

Stated entry, invalidation, and trail

The stated entry is a 0.50 offset above the cup high. The stated invalidation is the cup low. The stated trailing exits are 0.50 for same-day holds and 2 for multi-day holds.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
38 of 42 in the Stochastic oscillator track
20188-11 pp.Next on Stochastic oscillatorWeekly and daily stochastic readings with a long moving average and supportThe weekly-and-daily construction plots two slow stochastic %K lines: a 14-day line and a 70-day line, the latter chosen as 14 weeks of five trading days.
All readings on this track · 42 readings
  1. 1987Stochastic fast and slow construction as a rebuildable stack
  2. 1989Building the stochastic oscillator from close location
  3. 1990Monthly stochastics as a multi-year bond regime filter
  4. 1990Walk-forward screen for yen indicator rules
  5. 1990Slow stochastic construction for index pullback entries
  6. 1991Random Walk Index construction with an adaptive lookback
  7. 1991Building a two-stage stochastic oscillator from close location
  8. 1992Constructing fast and slow stochastic oscillator lines
  9. 1992Constructing nested stochastic lookbacks
  10. 1994Construct the four-state price-volume rank before filtering it
  11. 1996Crowded stochastics, false breakouts, and hidden stops
  12. 1997Fade and follow entries from stochastic extremes
  13. 1998Oversold confirmation as a staged rule-based-entry case
  14. 1999Constructing regular and slow stochastic oscillators
  15. 2001Construct a variable-interval simple moving average from stacked extremes
  16. 2001Threshold RSI and stochastic setups with next-bar stops
  17. 2001Two tests of a rate-adjusted earnings-yield gap
  18. 2002Constructing a two-line stochastic from a range-normalized close
  19. 2002Inspect mechanical stochastic daytrade rules on one bar
  20. 2003Constructing an adaptive stochastic RSI
  21. 2003Four parameters that construct a stochastic oscillator
  22. 2004Volume breakout as signal, pullback as entry
  23. 2004A first currency-market checklist with two averages and a slow stochastic
  24. 2005Shared-scale cycle indexes with companion oscillators
  25. 2005Current-bar versus prior-bar range construction for the stochastic oscillator
  26. 2005Two-session moving-average pullback short
  27. 2006Market condition as a permission layer for moving averages and oscillators
  28. 2008Lock the stop at support before sizing a stochastic entry
  29. 2010Construct a center-line volume oscillator and read it with a stochastic oscillator
  30. 2010Sharpened RSI turns with rainbow averages and a slow stochastic
  31. 2011Build a Spearman rank oscillator from ordered closes
  32. 2012Gold as a regime-dependent hedge in the euro-area crisis
  33. 2012Pairing moving averages with variable-length stochastics
  34. 2014Two-leg stochastic stress oscillator as a rebuild drill
  35. 2014Ingress dates as price bases for relative strength, stochastics, and moving averages
  36. 2017Constructing a dual EMA stochastic from range normalization
  37. 2018Constructing a two-stage stochastic RSI for comparable price-oscillator divergences
  38. 2018Combining a weekly stochastic, a long moving average, and two-day resistance
  39. 2018Weekly and daily stochastic readings with a long moving average and support
  40. 2018A confirming workflow for rotating from discretionary to staples
  41. 2019Stochastic scan thresholds, averages, and formula syntax
  42. 2020Constructing Slow %K as a two-stage helper
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