Best Stochastic Settings For Day Trading

Discussion in 'Technical Analysis' started by rc5781, Nov 9, 2007.

  1. rc5781

    rc5781

    I'm day trading the S&P E-Minis. Any suggestions on stochastic settings best suited for this?
     
  2. As I understand that indicator that just shows mostly overbought or oversold. I recommend using additional indicators such as the MACD or CCI.
     
  3. I am sorry but Macd and CCI are oscilators just the same. ADX may help a little as it indicates the trend strength, but support and resistence levels coupled with channels and a study of their duration mixed with trend following indicators have a lot more benefit than just a bunch of standard indicators that are available to every tom , dick and harry.
    best wishes
     
  4. If you would like to be faster and more precise with your entries and exits kill all those oscillators and learn to spot lows, highs and certain valuable patterns in price .

    The effort would not go in vain.

    Anek
     
  5. 5,5,2 is a decent setting for the stochastic. There are other really good stochastics settings too..just depends what you are trying to accomplish through the use of the stochastic for your application. MACD used with stochastic is a very good combination.
     
  6. Consider Stochastic (5,2,3) on 5 minute charts. In particular, look for steep crossovers of 50% on low volume as a leading indicator of imminent high volume breakouts. (If price action already has you in, then it is a nice confirmation to see.)

    To help stay with trends, consider the Stoch (14,1,3) in conjunction with the MACD(5,13,6) where you are looking to hold while Stoch<20 or >80 and MACD is well "away" from neutral.

    Hope that helps.
     
  7. rc5781

    rc5781

    Just wanted to say thanks for all the great advice very helpful.
     
  8. gnome

    gnome

    What fun is that? If you want to succeed, you gotta trade off of various derivatives, don't you?
     
  9. Gnome,

    Sorry, don't think I understand your post.

    Anek
     
  10. GaryN

    GaryN

    I think he was being sarcastic. The smaller the timeframe the less useful are the indicators, imho.
     
    #10     Nov 10, 2007
    joker542 likes this.