Now to continue our analysis of the daily evening star in the post above.
Here is a 4 hour chart with a Keltner channel.
By
tymen1 at 2008-04-29
This chart shows a stochastic instead of a MACD. We will use a stochastic in the next chart to try to discern a truth.
In this chart the middle BB is basically level, the MACD was going down, hence the resultant was going slightly down giving a best entry just below the middle Keltner.
This is where the price was at the short entry (black line) and the short entry was at market (start of 4th candle) at 881.
Our KC entry method has now been superceded by using one lot (or half of our allocation) and adding the 2nd lot at the top of a retracement. This gives consistantly a better short entry.
The stochastic shows that the price is going down.