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 Gold Customer
Joined: 12/1/2004
Posts: 18
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Could you help me with Stochastics settings? What are appropriate setting for long term and short term and do you put more weight on the short term or the longer term when trying to identify a buy point? Thaks for you help
Bobstel
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Worden Trainer
Joined: 10/1/2004
Posts: 4,308
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This type of interpretation and settings question is the type we are unable to answer in this forum. However, it's a great question for the Stock and Market Talk forum. I'll move this topic to that forum, and I suspect you'll get some input from other subscribers who use Stochastics in their analysis.
- Doug
Teaching Online!
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Registered User
Joined: 10/7/2004
Posts: 2,126
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Listen, I do not have the time to go over settings, but let me tell you. Stochastics is an indicator prescribed for uptrending stocks and markets or downtrending. I am not sure what your will use it for, but in this enviroment (trading range) Stochs will not be too efficient. May be before settings you should review the indicator usage.
good luck
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Here is a video to check out. It will show you what stochastics really measures which should help you decide what settings best fit your trading.
Understanding Stochastics
- Craig
Here to Help!
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Registered User
Joined: 3/9/2005
Posts: 5
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bobstel, my exposure to STOC suggests that by itself it's not be used as a buy signal. At a minimum STOC should be accompanied with other signals like volume, MACD and moving average crosing to support the STOC 'buy signal' confirmation. The STOC buy signal is typically the positive crossing of the 20% threshold. More aggressive traders use a lower threshold crossing, e.g. 10%-15%, more conservative traders use a higher crossing threshold, e.g. 25%-30%.
The use of multiple STOC collection periods, i.e. short term and longer term, helps you visualize whether the current rise in stock price has a short term, intermediate term or long term implication.
Consider viewing the stochastic video and/or just google STOCHASTIC STOCKS and you'll have a day's worth of definition and interpretation of that signal.
Hope this helps.. marcel
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Registered User
Joined: 5/17/2005
Posts: 221
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I use 7,3,3 and 12,3,3 , when these match on an overbought condition , along with the CCI indicator and simple support / resistance lines I buy. I never short .. I average 5 - 10% per trade (in 2 - 3 days). When I step outside of this method I lways lose money. I trade on the daily or hourly chart depending on how agressive I want to be.
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