Intraday Stochastics DILEMMA!

Discussion in 'Technical Analysis' started by alex.samant, Jan 18, 2007.

  1. I am trading intraday and usually consider buying when STO is oversold and selling when it's overbought.

    Of course i have a higher timeframe analisys to set bias and act only in that direction BUT:

    I found this little calculation thing about the STOCHASTICS...

    This is a real example on the 10 min chart:

    At the same time a 14,3,3 STO calculated on the Close is 33.60


    a 14,3,3 STO calculated on the (H+L+C/3) average is 19.81

    The latter generated a rather profitable buy signal which i took and my belief is that intraday, closes are not that significant as on the daily charts...

    What's your opinion? Should it be better calculated on that HLC3 average basis on intraday charts?
  2. They'll be times when one works better then the other. You cant keep constantly jumping back and forth between them. I always leave the settings on default. Why? More 'fish' will be using the settings on default, and if you can see exactly what they are seeing then you can trade against them.