I must get 50 emails a week asking about the way I pick so here's a vid showing my "Hummingbird Picking" using a cheap kit guitar, not a DeJayce!
With this technique your movements are extremely small but can still be very aggressive sounding. The main focus of fast picking, or picking in general, is to get across the string and back. This technique allows for very minute pick travel which the end result is extremely fast alternate picking.
Many players, famous and otherwise are convinced that any real picking speed cannot be achieved by movement of the thumb or index finger but rather only the wrist and some, the elbow.
However I'm convinced there is no real right or wrong way to hold the pick or pick fast other than to just do it and put in lots of practice time, but for me this is what has come very natural to me.
I have taught for many years and have not been able to find one other person other myself that has been able to develop this method of picking, so what ever works for you is great - but this is how I pick. I hope this sheds a little light on this subject - enjoy and keep practicing Folks :-)
Dannyjoe Carter - Hummingbird Picking Technique