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The Stockastic indicator can be useful if you
understand what it does. If a 30 bar stockastic is
under 20 all the indicator is saying is that the price
is on the lower extreme of the 30 bar range, and
nothing else.
Is that enough to say you want to buy, sell? I would
say HELL NO. But I have used it often as a method of
saying "the price is near the thirty bar low".
Like any other indicator, you need to be aware of what
the indicator is saying about the data its applied on!
I have not found (and am pretty sure there are no)
magic or cristal balls in the technical analysis
world!
H
--- editorial@xxxxxxxxxxxxx wrote:
>
> -- Andy wrote:
>
> > Markets changes. Something fundamental changes it
> and
> > that changes the technical aspects of the
> markets...
>
>
> Ok. So why do you propose that a system (the one
> you posted), which does not change, will continue to
> work in markets that change?
>
>
> * I wrote: Stochastics based systems are money
> losing
> propositions? Is that the end of the study? Is
> that
> the depth of one's conclusions? Do I have to ask...
> WHY don't they work?
>
> * Then Andy wrote: Not necessarily the case. I've
> been making money using an stochastic oscilator
> based system for several years now.
>
>
> Andy, are we communicating here? The question is
> not whether the stoch system works or not (!). The
> question is WHY it works or doesn't work. In your
> view it works. Fine. WHY does it work?
>
>
> OM
>
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