Using Stochastic

[overtrader]

Hi all...

I have been looking round here for a while and would like to ask if anyone could advise the best time frame and the best settings for the Stochastic indicator.

I like to day trade so any info that might help me... and others would be appreciated.

[ailovefx]

Originally Posted by overtrader

Hi all...

I have been looking round here for a while and would like to ask if anyone could advise the best time frame and the best settings for the Stochastic indicator.

I like to day trade so any info that might help me... and others would be appreciated.

I often use stochastic in time frame 4H and using 9,3,5 for the settings.

Hope that help.

[ghaze]

In Stochastic we can setting signals when time is overbought or oversold. Usually people use 20 for oversold condition and 80 for overbought condition.

[overtrader]

Thanks guys!

[fxangel]

Stochastics is a popular classic indicator used by many traders today. However, it seems that very few traders understand a really useful method of applying Stochastics and understand its limitations.

So I wanna share a blog about on how to optimize Stochastics settings for forex and future trading.. http://www.forextradingseminar.com/b...tures-trading/

Hope you'll find this one helpful..

Happy trading everyone..

[Nathansohn]

I have been playing with Stochastics recently. I use a single line and use the 50% as an indicator for a trade. If it crosses 50% and there is an MA crossover I would tend to make the trade in the direction it is going. (A little more too it, but that is the general gist of it). An exit may be when the price crosses the 10 period MA.

I don't think I would use Stochastics as a sole indicator, as it seems a touch to unreliable, but with another indicator to confirm the trade can give some good results.