Stochastics

fearless9 · Mar 16, 2008

Quote from shortorlong:

I know the whole deal about indicators are not a holy grail etc. I don't use an indicator as a sole trigger.
For those that are using stochastics, I wonder exactly how you are using them. What are the stochastics doing when you decide to make a trade decision?

SorL

The subject of indicators has been thrashed to death.

Just remember that every time you are looking at an indicator, you are not focused upon the price.

regards
f9

Goinglite · Mar 16, 2008

Quote from fearless9:

SorL

The subject of indicators has been thrashed to death.

Just remember that every time you are looking at an indicator, you are not focused upon the price.

regards
f9

If I were to use Stochastics, the primary reason would be for OB/OS.

Goinglite

Lucrum · Mar 17, 2008

Quote from Lucrum:

I feel like a market is "over bought" when there are no longer a sufficient number of buyers anxious enough to buy that they are collectively willing to lift enough offers to drive prices higher. And of course "over sold" would be the opposite.

Now maybe someone can explain how the following equations accurately determine the over bought or over sold condition of a market. Particularly when, as far as I can tell, it does not measure any actual buying or selling to begin with.

%K = 100 [ ( C - L5 ) / ( H5 - L5 ) ]

%D = 100 x ( H3 / L3 )

I guess not.

davidmaria1 · Mar 17, 2008

USD/JPY USD/CHF etc etc. .....all have spent several days in the "oversold" territory, often making vague attempts to rebound. NOT the grail!
When used on it's own, "The stoch can make you broke!!"
I made that up myself.

silvermotion · Mar 17, 2008

i use stochastics a different way, i use them to determine if we are trending or not. so when the stochastics enters extremes (above 98 below 20) and they stay there, we are trending hard

i use 17,3,1 and 13,3,1 as settings

i only display the %D

Stealth Trader · Mar 17, 2008

Quote from Goinglite:

If I were to use Stochastics, the primary reason would be for OB/OS.

Goinglite

OB/OS = BS aka meaningless. Instruments can be overbought/oversold and still continue in the direction against a pegged indicator. Price is king.

st

Stealth Trader · Mar 17, 2008

Quote from silvermotion:

i use stochastics a different way, i use them to determine if we are trending or not. so when the stochastics enters extremes (above 98 below 20) and they stay there, we are trending hard

i use 17,3,1 and 13,3,1 as settings

i only display the %D

Gee, I wonder what price is doing when that squiggly line is telling you the market is "trending hard."

st

silvermotion · Mar 17, 2008

Quote from Stealth Trader:

Gee, I wonder what price is doing when that squiggly line is telling you the market is "trending hard."

st

normally it would be going the direction of the trend you smartass.

Stealth Trader · Mar 17, 2008

Quote from silvermotion:

normally it would be going the direction of the trend you smartass.

Correct! And how many times does an indicator like STO exit the OB/OS area only to reverse right back into it stopping you out early or getting you in a trade opposite price direction? IOW, is the dog wagging the tail or is the tail wagging the dog?

If you don't understand the concept of price action, just say so. No need for name calling or embarrassing yourself in this manner.

MandelbrotSet · Mar 17, 2008

Quote from silvermotion:

normally it would be going the direction of the trend you smartass.

That's a great chart slivermotion.

In it are all of the elements that a trader needs to successfully scalp the e-minis.

If the OP can figure-out what it is saying he would be way ahead of the game with little cost of pain.

Good trading.