Daily Stochastic Technical Readings ...

[flyer]

Which stochastic parameters do you prefer to use while utilizing daily technicals?

After extensive study, I have chosen 14,3,3. Thus far, these selections seem to be working well, but I'm wondering if my selections are in-line with the rest of the market.

Thanks for your feedback.

flyer

[Rob & Von]

Good Morning


I also use STOCHASTICS as one of my indicators all the books say to use 14 - 3 -3 and that seems to work well on weekly-daily-hourly. If you backtest you can check how they line up with back data. I actually keep a daily record of the numbers of the STO/ADX I monitor them every morning at 9:00 am which is the time the day changes. Its very interesting as sometimes the STO is looking like a good downtrend but when you check the no's you find they are higher than the day before which indicates a change in sentiment.

What other indicators are you using??

Regards
Von

[flyer]

Rob & Von-

Thus far, I have only attempted to utilize a 24,5,5 & a 14,3,3 on the slow stochastic readings. After carefully backtesting data, I concluded that a 14,3,3 reading seems to present a more accurate reading in relation to the overbought/oversold ratio with respect to price fluctuation.

With regards to your comment of price movement in relation to market sentiment, you are absolutely correct. However, generally speaking, when a cross of the D% & K% occurs and begins either an upward or downward trend, the trend often continues for some time in that repective direction, which can result in a significant price gain (profit). Market sentiment can and will reverse such a trend, but more often than not, a daily cross seems to hold out resulting in a nice swing.

I sort of thought most everyone used the 14,3,3 -- but I figured it'd be best to ask the "experts" who frequent this forum.

Thanks again....

flyer

[mishak]

Well, I use slow stoch 5,3,3 or 6,3,3 (depending on time frame) on hourly, 4H, daily charts.
It works fast enough to give a warning/signal about trend reversal.
Take profit corrections happen all the time on 24H forex, so one should stay aware.