Stochastics?

[#1]

Hi there, Did some reading about Stochastics and it seems you can get "fairly" accurate entry and exit signals using it. Do you think it is sufficient to use the Standard Bank JAVA graphs for that or would one need more sophisticated graphing software. Any tips using stochastics? Thanks

[Mar-11]

I use stochastics (&RSI) as a secondary indicater. ie, to confirm my entry/exit point. Not sure if Stochastics are enough if used in isolation. Then again im sure some one has devoloped a system using only stochastics.....

[Douw]

Stochastics work like a charm on SOL if you set the periods as 13 and 23 days. Accurate entry and a good indication of exit points. I just watch mainline news and otherwise use the stochastic alone on SOL. On other shares like SSP, stochastic is a very poor indicator of entry and exit points. In short, it does depend on the character of the particular instrument.

[GarethJ]

Yes, using OST go and look at the graphs of various shares and you'll see fairly good patterns of where stochastics seem to work and where not. Also more reliable if supported by volume increases.

[saash]

I also use it as a secondary indicator and quite favour it.

[Alibaba]

The school of Magliolo professes that one could use the Stochastics and MACD graphs alternatively (the one or the other) with the DMI (ADX) trendline Graph. When the DMI(ADX)is trending upwards you use the MACD and when it is trending flat or downwards you use Stochastics and RSI. THe MADC however also shows entry and exit point like follows. When the moving average (blue line)crosses above the signal line (breaking into the red) but below the Zreo (0) line it indicates a buy signal. When the blue line crosses below the signal line (breaking into the green)but its above the zero line then it indicates a sell signal. I know it sounds confusing but it works pretty well with some shares like IMP.

[SimonPB]

I once had a system that used 3 Stochastics at diff periods .. when all bunched it was the confirmation, break was the triggger .. an the ones on the online charts as good as any other Stochastics ..

[#8]

Simon, what happened to your system - you don't use it anymore?

[Cherry]

Simon, what parameters did you use.

[Asher]

Java graph on this is fun so if you are serious stay away from it

[SimonPB]

can remember the parameters .. coud hunt them out, but that means going through boxes an boxes of traidng notes .. it was a very short, short and med .. when all bunch at top or bottom I waited for the reversal break ..

stopped using it when I adjusted all my trading to way more siple with no indicators or oscilators ..

[Enzed]

Simon - at the risk of asking you to cover something you have already covered - what do you use in place of indicators and oscillators. I have often wondered if one could just trade with moving averages after all many indicators use MA's anyway -and some sort of volume indicator.

[SimonPB]

I use MA pretty much exclusively, or just price at resistance/suupport ..
MA's I use 7/21 in the one (beta testign ALSI with this one) and my lazy system is 15/30/60