Stochastics are better than sliced bread

Quote from trader28:

Oh great, now I'm hungry
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Hi T28,

this is an OT post here but as SPM thread was closed this is the only way to contact you -

As I've an old KP version for MetaStock that misses some of the indicators(MA) you've mentioned in SPM I'd like to compare one chart of yours in which are plotted all the original KP indicators(autostop, tightstop, stopline and so on) for your SPM setup... or better, for the TSKP2min tmpl/expt (BTW, I miss this one too... in my KP there's a tmpl/expt called DELTA2MIN... but not sure if it makes the same job of your TSKP2MIN)-

The chart I need should be of some security like SPY, QQQQ (or equivalent, indexes are OK too) with daily periodicity so as to do a worthwhile comparison (due to higher probability of data equivalence).

If you're so kind to do it for me, send one or more charts here:

stratocaster_62 AT hotmail DOT com
just substitute AT and DOT for @ and .

Thanks a lot and keep the good work.

ontherun
 
I realize this is old but I've never understood the passion for oscillator style indicators.

1. Everybody and their Uncle uses them.

2. They overload easily to one direction in a strong trend.

3. Their sensitivity to the look-back parameter, which of course governs how often overbought and oversold readings are recorded. 14 bars generally.

Work arounds include dynamic cycle finders that change the look-back length on-the-fly as market conditions change. Still not so swell.

Possible usage for divergence detection as previously suggested.

I personally like the Lomb algorithm. Phase plot is like stochastics and a histogram can easily be added to signal noise and filter accordingly.
 
Yep, you found the holy grail. Stochastics should give you triple digit returns. Of course those returns will be negative triple digits, but I wouldn't be concerned about that.
 
Stochastics and RSI are great until they're pegged in the over-bought or over-sold during a rising market or a big sell off. You'll hack trade after trade looking for the reversal point. I pair oscillators with other indicators and use them more for confirmation. I think they're useful but I don't really trade off them.
 
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