Saturday, November 11, 2006 7:51:55 PM
Sorry Mike. I can't PM you cause I am not a paid member yet.
Regarding your question about the landslide setup. Though I never used it to short stocks, if I understand it correctly it should be the exact opposit of the magic box setup. This means that you shold have:
(1) a white candle on day one with a close near the upper bollinger band (I prefer above) and Aroon Up(8) = 100.
(2) Then on day 2 you should have a red candle (down day) close inside the bollinger bands with Aroon Up(8) declining to 87.5
when these two events occur, then you have an unconfirmed Landslide setup. To confirm the landslide setup, the Aroon up(8) should drop to 75 or below and Williams %R(9) should cross below -50 and head down to -80.
This doesn't have to happen in the same time.. You have full 8 days for the landslide setup to be confirmed. Any thing beyond that time should be ignored (to my understanding.)
this is the basic setup of the landslide. moreover, I prefer to use "full stochastic %k(14,3,3) above 80 and curling down towards 80 and below" as an alert to be looking for a possible landslide setup.
As an example, look at the chart below of Wallgreens (WAG).
On Sep 11, the stock closed almost at its peak of 51.51. the next day it dropped down to below 51. now if you see the Aroon indicator, you would notice that the Aroon up(8) is 100 on Sep 11th and dropped to 87.5 the next day.
now on day one you have a white candle closing above (or near) the upper bollinger band with aroon up(8) at 100. And on day two you have a red candle closing below the upper bollinger band with arron up(8) dropping to 87.5
so now u have an unconfirmed landside. now we wait for the arron up(8) to drop to 75 or below and for the williams %R(9) to cross below -50 for confirmation. That happened on the third day. So had you been monitoring the stock activity, you would have shorted the stock on the third day before the close. (Some traders would wait for a pullback since it closed below the 20 day moving average.)
Anyways. I hope this was helpful to you. Good Luck
PS: Your exit point should be upon the confirmation of the magic box setup, or whenevr you feel you had enough and it is time to cover :)
Regarding your question about the landslide setup. Though I never used it to short stocks, if I understand it correctly it should be the exact opposit of the magic box setup. This means that you shold have:
(1) a white candle on day one with a close near the upper bollinger band (I prefer above) and Aroon Up(8) = 100.
(2) Then on day 2 you should have a red candle (down day) close inside the bollinger bands with Aroon Up(8) declining to 87.5
when these two events occur, then you have an unconfirmed Landslide setup. To confirm the landslide setup, the Aroon up(8) should drop to 75 or below and Williams %R(9) should cross below -50 and head down to -80.
This doesn't have to happen in the same time.. You have full 8 days for the landslide setup to be confirmed. Any thing beyond that time should be ignored (to my understanding.)
this is the basic setup of the landslide. moreover, I prefer to use "full stochastic %k(14,3,3) above 80 and curling down towards 80 and below" as an alert to be looking for a possible landslide setup.
As an example, look at the chart below of Wallgreens (WAG).
On Sep 11, the stock closed almost at its peak of 51.51. the next day it dropped down to below 51. now if you see the Aroon indicator, you would notice that the Aroon up(8) is 100 on Sep 11th and dropped to 87.5 the next day.
now on day one you have a white candle closing above (or near) the upper bollinger band with aroon up(8) at 100. And on day two you have a red candle closing below the upper bollinger band with arron up(8) dropping to 87.5
so now u have an unconfirmed landside. now we wait for the arron up(8) to drop to 75 or below and for the williams %R(9) to cross below -50 for confirmation. That happened on the third day. So had you been monitoring the stock activity, you would have shorted the stock on the third day before the close. (Some traders would wait for a pullback since it closed below the 20 day moving average.)
Anyways. I hope this was helpful to you. Good Luck
PS: Your exit point should be upon the confirmation of the magic box setup, or whenevr you feel you had enough and it is time to cover :)
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