What are the best parameters to use for the full stochastic indicator
- Thread starter John_IL
- Start date
TraderZones that's with regards to FX, but what would you say about commodity markets ?
How do you think at all stochastics really bad idea to work with ?
Just as idea, when choosing periods of stochastics need to understand
1) Full, Slow, Fast, (other)
2) K/D periods
Whether stochastics "in line" with "market cycles" at what %, say with you set 2/2 stochastic it's just "wonderful" thing in ultra-short scalp, but when price will go out that stochastic cycle say upward, you will short - it will wrong.
Krgds,
P.s. just for info all above is just idea
How do you think at all stochastics really bad idea to work with ?
Just as idea, when choosing periods of stochastics need to understand
1) Full, Slow, Fast, (other)
2) K/D periods
Whether stochastics "in line" with "market cycles" at what %, say with you set 2/2 stochastic it's just "wonderful" thing in ultra-short scalp, but when price will go out that stochastic cycle say upward, you will short - it will wrong.
Krgds,
P.s. just for info all above is just idea
Use a 3-line Stochastics with George Lane configurations for seasonal spreads.
> Use 5 periods for %K.
> with a 3 period exponential moving average of %K, for %D
> with a 3 period exponential moving average of %D, for SlowD
Chart all three lines over price.
"Stochastic Pops," can be used to average up. Mainly use Stochastics for entries. Watch for "Waterfalls," crossovers at the top, as a warning of the Seasonals close.
Stochastics is really very easy to use on spreads. First, your valid signals are only in the direction of trend. The way we configure spread charts with the long first and the short later. The seasonal trend will always be up!
All you have to do is look to see how Sto worked in the past relative to the price cycles of the spread you are charting, and this will give you an indication as to how it will behave when the pattern repeats.
Pretty much, you are using Sto to get in, and then using the seasonal chart with Parabolic to stay in. You are not using Stochastics alone to exit, use stops & targets.
Would you like to see some of George LaneÃs actual charts?
This is not the complete story, if you or anyone else is interested email me. And I will email you a copy of one of the books from his classroom. The story here is in the charts.
> Use 5 periods for %K.
> with a 3 period exponential moving average of %K, for %D
> with a 3 period exponential moving average of %D, for SlowD
Chart all three lines over price.
A bullish divergence - convergence from a crossover area near a seasonal window opening is your clue to look for a crossover on the right hand side of a cycle, to act!
Any turn up from a crossover area near a seasonal window opening needs inspection. Getting in after Sto turns up is just extra insurance. The only valid signal is divergence - convergence. If you want a crossover system use MACD. There is no such thing as overbought or oversold. Prices are never so high that they cannot be bought, or never so low that they cannot be sold.
"Stochastic Pops," can be used to average up. Mainly use Stochastics for entries. Watch for "Waterfalls," crossovers at the top, as a warning of the Seasonals close.
Stochastics is really very easy to use on spreads. First, your valid signals are only in the direction of trend. The way we configure spread charts with the long first and the short later. The seasonal trend will always be up!
All you have to do is look to see how Sto worked in the past relative to the price cycles of the spread you are charting, and this will give you an indication as to how it will behave when the pattern repeats.
Pretty much, you are using Sto to get in, and then using the seasonal chart with Parabolic to stay in. You are not using Stochastics alone to exit, use stops & targets.
George used Fibonacci numbers in Stochastics. Remember the signal to act is a '''divergence - convergence''', in an extreme crossover area, with the crossover on the right hand side, at a seasonal cycle low.
Would you like to see some of George LaneÃs actual charts?
This is not the complete story, if you or anyone else is interested email me. And I will email you a copy of one of the books from his classroom. The story here is in the charts.
I myself love using stochastics. I have 9 oscillators with settings based on Fibonacci sequence numbers. I primarily tape read but when I see big money entering the market and a trend developing, I'll then reverence the stochastics on my very short interval tick chart to determine when a pull back is loosing steam and reversing for an entry. I look for certain sets of oscillator cross overs and certain other oscillators to be trending in the direction of the side I'm wanting to go with. Seems to be working, but I prioritize the tape, NYSE $TICK first, then stochastics.