TwoNaHalf.

cOm: Dow Trend Finder

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What is the Dow Trend Finder?

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Stock Charting

Trend Trading

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Stock Trend

Firstly, according to the Dow Theory a Trend has a definition. By definition a stock is said to be in a UP trend when the price is making a Higher-High and a Higher Low and a stock is in a DOWN trend when the price is making a Lower-High and Lower-Low. For a stock to be said to be in trend there must be at least 4 data points available, namely the last 2 highs and the last

Important: You can combine the Double-Swing signals with the DOW Trend finder f to enhance your trading results. Trade Long when the selected Scrip is making a Hi High Higher-Low pattern and when the Bar Turns Blue, this simpe combination will you enhance your trading results with the Double-Swing Trading Strategy.
Lets understand the Dow Theorys Definition of Trend with the help of charts. Below is an example of a UP trend marked on the chart:

Below is an Example of a DOWN trend marked on the chart:

http://www.twonahalf.com/new/DowTrend.htm

7/22/2010

TwoNaHalf.cOm: Dow Trend Finder

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TwoNaHalf.cOms Dow Trend Finder reads the historic price pattern of stocks, using the Zig-Zag study at 10%, a out stocks making a Higher-High Higher-Low pattern (UP trend) or stock making Lower-High Lower-Low pattern(DOWN

Why is this filter important?

This filter is important because when the Stock is Making Lower-High Lower-Low(DOWN trend), the bounce on the UP si short lived and will fizzle out quickly. Hence when the stock is making a Lower-High Lower-Low we must avoid long posi Such stocks are good for shorting when a relief rally has played out and the price turns back to resumes it primary trend DOWN. On the other hand when the price is making Higher-High Higher-Low(UP trend), the fall or correction will be shallow and lived, hence we must avoid taking short positions in such stocks, such stocks must be traded on the long side only. Thes are good for Long trades when the corrective fall has played itself out and the stock turns up to resumes its primary tren Filters: TwoNaHalf.cOm Provides two critical filters based on the DOW Trend. Up Trending Stocks - This filter scans out stocks that are making a Higher-High Higher-Low pattern. For stocks to be fou filter the stock needs to have at least 4 data points, 2 Highs and 2 Lows,

Important: You can combine the Double-Swing signals with the DOW Trend finder f to enhance your trading results. Trade Long when the selected Scrip is making a Hi High Higher-Low pattern and when the Bar Turns Blue, this simpe combination will you enhance your trading results with the Double-Swing Trading Strategy.

The Death-Cross Trading Strategy

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Please Note:
The Death-Cross Trading Strategy does not belong to TwoNaHalf.cOm Neither do we endorse this or any other strategy. We do NOT provide any buy or sell calls. TwoNaHalf.cOm is only a platform. We only implement the text-book strategies and highlight the milestones of what the text-book says. We do not, intentionally or un-intentionally, intend to make any kinds of suggestions there by influencing anybodys buying or selling decision. Trading on such strategies is solely the users decision.

What is the Death-Cross strategy all about?

Entry Expected Result

Indicators required: Stochastic Oscillator Candlestick Pattern (Doji) Basics first - What is a Doji Pattern? The Doji is a candlestick bar having no or almost no body, meaning that the open and close are very close. A Doji on its own does not mean much, but it is important in the context of preceding bars, and you must also gives consideration to the length of the shadows. Take a look at the picture below

For the Death-Cross Trading Strategy, we are interested in the first Doji pattern from the above picture.

Doji Reversals: Doji in itself does not have much of importance but when a doji appears during a trend(Up Trend or Down Trend) it is very significant. A plain Doji at the top of a uptrend or after a few long white bars show that the buyers are "tired" and have run out of steam. In fact, a Doji in this position is sometimes called the "Evening Star" or the "Death Cross" - it shows that a major reversal is about to take place .

Our Tradable Pattern: We are looking for a Doji to appear during a trend. The trend will be identified with the help of the Stochastic Oscillator.

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If the Stochastic Oscillator is in the Over-Bought zone, its clear that the stock is in a UP trend. If the Stochastic Oscillator is in the Over-Sold zone, its clear that the stock is in a Down trend. So we are looking for a pattern where the Stochastic Oscillator is either Over-Bought or Over-Sold with a Doji appearing on the candlestick bar. The Entry Point:
Lets take an example that the doji got formed during a Down Trend (Stochastic Oscillator was in the Over-Sold zone). We now put the stock on our watch list. We are now waiting for the stock to close above the high of the doji bar. The close above the high of the Doji bar should come in the next 2 days for a confirmation of the reversal. We are not concerned with what kind of body appears after the Doji, all that we are interested in is that the stock closes above the high of the doji, it could be a gap up or it could be a engulfing pattern on the immediate second bar. So our entry pattern would look something like this:

This Doji Appeared in ACC on 12-May-2009. Also note that on the day when the Doji got formed, the Stochastic Oscillator was in the OverSold region.

See the results here:

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Note: When the Doji appears during a Down Trend it is considered to be a Bullish Sign, when it appears duing an UP Trend it is considered to be a Bearish Sign.
The Stop Loss:
The initial Stop Loss is placed just above or below the high or low of the doji bar. Incase of we enter a Long Trade when a bullish Death-Cross got formed we would place our stop loss 1% below the Low of the doji day. Incase of we enter a Short Trade when a Bearish Death-Cross got formed we would place our stop loss 1% above the High of the doji day. Since this strategy is for Swing Trading, the Stop Loss gets triggered on a EOD basis.

The Exit Point:

For the Death-Cross Trading Strategy a profit margin of 10% should be expected.