Stochastics

Discussion in 'Technical Analysis' started by insaneinvestor, Aug 26, 2007.

  1. Ok gang:

    I am starting to use stochastics as a confirming indicator but I don't understand the difference between the "fast" and the "slow".

    It seems if I use the fast, it confirms my belief about 100% of the time, but the "slow" always contradicts. (my outlook is less than one month)

    I may assume that fast is for short term and slow is long, but is that correct? And, is there any other factors I should know of?

    Thanks!
     
  2. it has to do with the settings (time periods) that you are using...what settings do you use for the "fast" and "slow"?...to begin the discussion...
     
  3. Fast: K5, D3 - default
    Slow: K15, D5 - default

    I tried to look this up but could not find anything. - I am embarrassed to say I don't even know what D and K mean. :eek:
     
  4. Awesome! Thanks. :cool:
     
  5. Never heard that before, is stochastic "full" the same as william blaus' stochastic momentum index?

    Been around long enough, i imagine it is.
    You may find the smoothing factor of SMI to be what your after.
     
  6. I actually have a new question now:

    The article thing said 14 and 3 but when I put them it the max seems to be 10, thus screwing everything up no?

    I am using OX.

    Any thoughts?
     
  7. Thanks.

    It does not seem to be all that different from 10-3 or 5-3 and after some thought, 10 would be two weeks anyway.

    Funny thing is everytime I read something the indictors are different. - Whatever, like you said, as long as you get what your going for....
     
  8. insaneinvestor,

    Use the Stoch for signal entry set-up (catching the price cycles) and the MACD for entry confirmations. I trade the felton trading method with faster than standard Stoch and MACD settings..works very well imo.
     
    #10     Sep 3, 2007