The hook pattern on the stochastics indicator is one of the most reliable indicators for short term trading.
I have placed a close up of the pattern so you can see exactly what constitutes that pattern.
You are looking for the line to move below 80 and then turn back up from just below 80. Once the pattern turns down one more time you have a very high probability for a price decline.
This pattern will work in all stocks and commodities and while it is very simple, it is very powerful.
Below, you will see the full chart of Ford with the hook patterns I have spoken of. I have also marked all of the pattern completions with the Blue Line.
The results speak for theirselves.
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