Stochastics

[insaneinvestor]

Ok gang:

I am starting to use stochastics as a confirming indicator but I don't understand the difference between the "fast" and the "slow".

It seems if I use the fast, it confirms my belief about 100% of the time, but the "slow" always contradicts. (my outlook is less than one month)

I may assume that fast is for short term and slow is long, but is that correct? And, is there any other factors I should know of?

Thanks!

 

[increasenow]

Quote from insaneinvestor:

Ok gang:

I am starting to use stochastics as a confirming indicator but I don't understand the difference between the "fast" and the "slow".

It seems if I use the fast, it confirms my belief about 100% of the time, but the "slow" always contradicts. (my outlook is less than one month)

I may assume that fast is for short term and slow is long, but is that correct? And, is there any other factors I should know of?

Thanks!

it has to do with the settings (time periods) that you are using...what settings do you use for the "fast" and "slow"?...to begin the discussion...

 

[insaneinvestor]

Fast: K5, D3 - default
Slow: K15, D5 - default

I tried to look this up but could not find anything. - I am embarrassed to say I don't even know what D and K mean. :eek:

 

[thesecrettrader]

http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:stochastic_oscillato

There you go.

 

[insaneinvestor]

Awesome! Thanks.

 

[acronym]

Never heard that before, is stochastic "full" the same as william blaus' stochastic momentum index?

Been around long enough, i imagine it is.
You may find the smoothing factor of SMI to be what your after.

 

[insaneinvestor]

I actually have a new question now:

The article thing said 14 and 3 but when I put them it the max seems to be 10, thus screwing everything up no?

I am using OX.

Any thoughts?

 

[acronym]

Having the standard setting isnt that important, as long as it looks like it will do what your after.

Dont have OX, but did get this on the SMI, only a small difference, but i reckon an improvement.

http://www.prophet.net/analyze/popglossary.jsp?studyid=SMI

 

[insaneinvestor]

Thanks.

It does not seem to be all that different from 10-3 or 5-3 and after some thought, 10 would be two weeks anyway.

Funny thing is everytime I read something the indictors are different. - Whatever, like you said, as long as you get what your going for....

 

[thesecrettrader]

insaneinvestor,

Use the Stoch for signal entry set-up (catching the price cycles) and the MACD for entry confirmations. I trade the felton trading method with faster than standard Stoch and MACD settings..works very well imo.