The Daily Standard
Cove Daily (Standard) TA Set-up: This is the 2nd of 2 primary set-upplays we use when trying to find a good stock to trade short-term. Aswith the Pincher Set-Up, to be fair, this TA setup has elements thatwere not developed by the Cove and we do not therefore take credit forthe entire grouping. However, as with the Pincher Set-up, we have foundit to be an amazingly powerful TA setup. Whereas the Pincher Set-upconcentrates on extremely beaten down stocks, the Cove Set-up can beused under all conditions.
As with both TA Set-ups, the CoveSet-up should be considered in conjunction with other TA/FA dynamics. Ipersonally like the Pincher in Combo with the daily growth chart setupon the TA side and several key ratios in combination withSector/Industry dynamics on the FA side.
1. STO (5) crosses over while continuing to rise. It is fully bullish as it rises up thru the 50 line.
2.MACD (15) crosses over while continuing to rise. The histogram barsalso rise and the MACD is fully Bullish as it rises up thru the signalline (0.0).
3. Aroon (8) direction change with up Aroon turning up from the bottom (0%) and the down Aroon turning down from the top (100%).
4. Williams % (9) rises up and crosses the -50 line.
5. ADX DIs (5) crossover with the -DI falling thru the 20 line while the +DI rises thru it.
6. SAR is triggered from downtrend signaling an uptrend.
7. Aroons (8) crossover = early BUY SIGNAL.
8. Aroon up reaches 100% pinnacle and the candle breaches the mid-bollie (20MA).
9. Full confirmation achieved when the candle clears the mid-bollie (20MA).
Theother important indicator is Money Flow. OBV (plotted against the 20MA)and CMF (21) are used to indicate money flow direction as well asbuying -vs- selling pressure. Negative divergence in either/both mayindicate dilution. In this example, both are trending up serving toconfirm the positive direction.
As with both TA Set-ups, the CoveSet-up should be considered in conjunction with other TA/FA dynamics. Ipersonally like the Pincher in Combo with the daily growth chart setupon the TA side and several key ratios in combination withSector/Industry dynamics on the FA side.
1. STO (5) crosses over while continuing to rise. It is fully bullish as it rises up thru the 50 line.
2.MACD (15) crosses over while continuing to rise. The histogram barsalso rise and the MACD is fully Bullish as it rises up thru the signalline (0.0).
3. Aroon (8) direction change with up Aroon turning up from the bottom (0%) and the down Aroon turning down from the top (100%).
4. Williams % (9) rises up and crosses the -50 line.
5. ADX DIs (5) crossover with the -DI falling thru the 20 line while the +DI rises thru it.
6. SAR is triggered from downtrend signaling an uptrend.
7. Aroons (8) crossover = early BUY SIGNAL.
8. Aroon up reaches 100% pinnacle and the candle breaches the mid-bollie (20MA).
9. Full confirmation achieved when the candle clears the mid-bollie (20MA).
Theother important indicator is Money Flow. OBV (plotted against the 20MA)and CMF (21) are used to indicate money flow direction as well asbuying -vs- selling pressure. Negative divergence in either/both mayindicate dilution. In this example, both are trending up serving toconfirm the positive direction.
Posted by Cove Reflections at 9/6/2009 9:45 AM 
Categories: Cove Technical Analysis Setup-- Standard
Tags: TA Chart Technical Analysis STO MACD Aroon Williams ADX pSAR OBV CMF
Categories: Cove Technical Analysis Setup-- Standard
Tags: TA Chart Technical Analysis STO MACD Aroon Williams ADX pSAR OBV CMF
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