Setting Stochastis Question

Discussion in 'Technical Analysis' started by arthus, Dec 13, 2003.

  1. arthus

    arthus

    Crossover Stochastics to signal either buy/ sell. Would be on trend reversal strategy

    I'm trying to use it on the QQQ. Set it on a 10 min chart
    and seems to be working nice on a (3,2) period.
    My question is... how valuable would be an indicator with such small period when I see people setting it to (10,10) or sometimes longer? Is it really useful such a short period in the stochastic?

    I'm still a beginner, haven't traded and wont for some time. I'm just following the market so far...

    Thanks for the imputs
     
  2. I am using MACD on a 1 m chart. But I am not sure which setting is the best. Any input from other MACD--users?
     
  3. My setting now is 26,12,9.
     
  4. nkhoi

    nkhoi Moderator

    same here, that should work for all time frame.
     
  5. Didn't the thread starter ask about the stochastic? We managed to get off topic in less than one post! :)
     
  6. With just any indicator as per my experiance, if you are using
    lower time frame you indicator setting should be highered, and
    if you are working with longer time frame your indicator setting
    should be lowered.

    Example:
    for 1 min chart, , 50, 100, 200 moving average works best.
    for 3, 5 min chart, 20 and 50 MA works better.
    for 10, 15 min, 5 and 10 MA works better.

    If your time frame is above 1 minute, i belive your stochastic
    sould be 10-14. higher time frame and seting should be lowered
    accordingly.
     
  7. Here are some STOCH and MACD settings that work VERY GOOD for finding divergence plays during the trade day...I have a few examples of how these indicators can be used to go for +2.0 point hits during the day (+2.0 pts for the first 1/2 of your position and then let your second half ride with a trailing stop).

    The Stoch setting is : (5,5,2)

    The MACD setting is : (4,13,1) .....some use (8,11,1)

    My chart information (screen captures) are in www.ttrader.com in the "mycharts" section under my name "CK Charts".

    www.ttrader.com/mycharts/display.php?p=17448&u=amt4swa=CK charts&id=662

    click on "mycharts home" and go to CK Charts for examples

    Hope This Helps!

    Chris
     
  8. A MACD setting 4,13,1..?! Are you sure? It sounds (and looks) strange...
     
  9. lindq

    lindq

    It will help you in your trading to think in broader terms about what a stochastic is, how it functions, and how it relates to price action. Same holds true with any indicator.

    Once you have the big picture, you can more easily draw your own conclusions. The problem with taking anyone's advice on specific settings is that they are usually adjusted based on the very personal style of the trader, and after a good deal of real world experience. I could for example, tell you that I trade a very nice system based solely on an EMA, which I do. But giving you my parameters doesn't mean squat if you don't comprehend the entire approach that I take to the market.
     
  10. dbphoenix

    dbphoenix

    Out of all these people, lindq is the only one to get it right.

    Find out how the stochastic is constructed. Then you'll know what settings to use for the bar interval and timeframe you want to trade. Adopting somebody else's settings for no other reason than that it seems like a good idea makes no sense whatsoever.
     
    #10     Dec 13, 2003