The point to note here is that in a bull market you fall down to the MA(50), then get a very low stoch reading and bounce off it…

 

In the example below you’ll see that failure occurs when you approach the MA(50) with a high stoch reading.

 

So we are currently approaching from above (back-testing), with a very low stoch reading. This ought to be the ideal set up to advance upwards. As always watch for failure at this and other key points to give invalidation. So far, nothing to worry about.