In an effort to clarify any remaining misconceptions, I have posted the attached color-coded chart. As you can see, some traders often refer to the "Fast Stochastics" when referring to Stochastics (5,2,3). As a result, "Slow Stochastics" infers a reference to Stochastics (14,1,3). In addition, both settings for The Stochastic Indicator contain 'Slow' and 'Fast' Lines. We refer to the %K Line as the 'Fast line' and the %D Line as the 'Slow Line.'
Depending which methods or trade 'set up' one follows determines which of the Stochastic Settings one would use.
For example, When entering Long using Dry Up Volume for an equity finding itself "In Dry Up" from the previous day, one looks for The Stochastic Indicator (14,1,3) - %K Line - to reach an 80 level on a thirty minute chart.
When following a 'Bruno R' set up, one looks to see a Stochastic (5,2,3) Crossover (%K Line crosses over %D Line) to the upside "in the 20 area" on a daily chart. One then looks for The Stochastic Indicator to continue on above the 50 level (%K Line) - breaching the 80 level and pulling back - also on a daily chart. Later, one looks to see 'intertwining' of the Stochastic Indicator (14,1,3) - both %K Line and %D Line - and above the 80 level in order to receive a 'Hold Signal.'
Admittedly, confusion can develop when discussing various Indicator Settings across a variety of time frames (fractals). As such, I hope the above explanation provides some additional clarity for those still having any confusion.
- Spydertrader
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1077380>
Depending which methods or trade 'set up' one follows determines which of the Stochastic Settings one would use.
For example, When entering Long using Dry Up Volume for an equity finding itself "In Dry Up" from the previous day, one looks for The Stochastic Indicator (14,1,3) - %K Line - to reach an 80 level on a thirty minute chart.
When following a 'Bruno R' set up, one looks to see a Stochastic (5,2,3) Crossover (%K Line crosses over %D Line) to the upside "in the 20 area" on a daily chart. One then looks for The Stochastic Indicator to continue on above the 50 level (%K Line) - breaching the 80 level and pulling back - also on a daily chart. Later, one looks to see 'intertwining' of the Stochastic Indicator (14,1,3) - both %K Line and %D Line - and above the 80 level in order to receive a 'Hold Signal.'
Admittedly, confusion can develop when discussing various Indicator Settings across a variety of time frames (fractals). As such, I hope the above explanation provides some additional clarity for those still having any confusion.
- Spydertrader
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1077380>
