DHOT60 is a trick that was developed for penny stock traders. One must click on "gallery view" in stockcharts.com and then enter ticker symbol to view the correct chart.
The criteria is the daily candle needs to touch the EMA 60 line at the bottom of the chart. Also it's even better if the weekly candle on the weekly chart (below that daily ) touches the EMA60.
So as I understand it rule one is wait to buy til it's DHOT60, rule 2 is move quickly, and rule 3 is third day in play collect your pay. Meaning take profits after day 3 of green.
It works to varying degrees and I surely violated the third rule here but I was pretty sure gold and miners would continue down as they did.
I think dude iligence has a summary of how it works on his board DHOT60. I use it to find beaten down stocks and ETNs that are due for a bounce but it's not the be all end all indicator in my trading. It's one of many tools I use.
I'm looking to get back in here or add to my NUGT short this week if we do have a bounce in gold and GDX but if not I'll continue to ride my smaller short position in NUGT.
Hope that helps! Good luck to all and happy trading.
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