Stochastics

Quote from 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....
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Yeah, thats what i meant-just tool around until it looks like its tracking the price action you focus on, theres more than one way to read an indicator to.

If your only after solid overbought/oversold areas, a medium time frame fisher transform might be worth a look , if your software has it.
 
Rofl, does EVERYTHING have to be about the vaguely verbose Mr Hershey?

For chris'sake, the stochastic would have to be just behind a moving average in simplicity,
but no, jack turns it into a "paradigm".
Aaaargh....
Jeepers.

For something new, exciting, that isnt simply a paradigm, try;
http://www.elitetrader.com/vb/showthread.php?s=&threadid=102700


Edit-Or for light entertainment, in case you can sleep after one of jack's mind bending trips into shakespearean make-up-the-language-as he-goes along sojourns into trading psychology.
There's just no need, for so many new acronyms.
Is there?
 
Quote from 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
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Interesting version of a stochastic derivative there.. I had never seen that before.

Also..there is a no cost webinar tomorrow at 3:30 pm cst, which shows faster than normal non-standard stochastic settings in use to make scalp and shorter term position trades at feltontrading.com
 
When the market is NOT trending (majority of the time), you can trade very effectively with the cycles of price within range bound areas by use of stochastics for trade entry set ups. The stochastic set to faster non standard settings gets very "in sync" (not the signing group) with the price action rotation cycles within a range.

During trending price action periods, the stochastic can have numerous counter trend signals that are not nearly as effective as the periods where there is cyclical price rotation..this is when the stochastic shines. For the method I trade, there must always be a MACD to confirm any set up signal created from the stochastic readings for entry qualification (because the stochastic has a weakness by itself in trend periods).
 
George Lane, RIP, made his fortune as a vendor and a broker, not a trader. Stochastics is derived from PRICE ACTION, a momentum indicator.

Without an understanding of price action it means nothing and with an understanding, is as useless as an ass wiping manual!
 
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