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Juan,
In theory you are on the right track about volatility.
The question of changing timeframes is another matter. Oscillators
can be made adaptive but I'm not sure that the result is worth the
effort.
Before you play the game you should have a game plan that answers the
question of how you will handle this. Keep in mind that some of the
best trading opportunities occur when volatility contracts. You can
also loose a great deal if you are not prepared. By all means use
stops!
Preston
--- In Metastockusers@xxxxxxxxxxxxxxx, "emarco" <emarco@xxxx> wrote:
> Hi,
>
> 1) I would like to be advised how to handle the divergence of
stochastics.
> I would like not to enter a trade when this happens: price does not
move or
> goes down and stochastic still goes up.....I know that depends of
the
> period of the stochastic but perhaps there is a way to avoid this
type of
> trades.
> My idea also is to place a trailing stop when I am long or short
and
> stochastic diverges.
> 2) "How to handdle stochastic due to a change in volatility?"
> In different volatility situations sometimes is better to use a
faster
> stochatic than a slower or the other way round....How can I adjust
the
> oscilators with change in volatility?
> Perhaps is too challenging cuz volatility changes suddenly or you
adjust to
> a different volatility and would have been better with the previous
> one...just thoughts
> I know is the 1MM question but any comment or advise would be
appreciated.
>
> Thanks
>
>
> Juan
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