|
PureBytes Links
Trading Reference Links
|
As far as I am concerned, the stochastic indicator is the only one that tells
you where you are now in relation to the cycle you are trading. If set up
properly it indicates both buying and selling pressure in the markets and
tells which side of the market to be on. Yes, the lines are a moving average
and a moving average of a moving average, but if you use it exponentially and
an X,3,3 configuration, your relationship with the last X number of bars is
shown and you can tell where the stochastic indicator is going to go next by
just looking back and dropping off the first bar of the series. It is not
only the indicator, but its effect upon price that gives you a confirmation
of a trade. It is not a trading system. It should not be used as over
bought and oversold buy or sell signals and divergences may occur two, three
or four times prior to a reversal in direction of price. All are warning
signals or trade confirmation signals, they are not triggers to initiate a
trade. If properly used, this indicator can be a great aid, if improperly
used or fitted, it can cost you a lot of money. Just like anything else in
trading, horseshoes, golf, or dancing, the better you are the easier it
looks. Ira
H.Albizem@xxxxxxxxxxxxxxxx wrote:
> --- In realtraders@xxxx, Ira Tunik <irat@xxxx> wrote:
> > If you believe that stochastics works best in range markets, then
> you don't
> > use it correctly. Dig in one of your books and re read the basis
> upon which
> > stochastics was developed and how it is used. It is not an over
> bought, over
> > sold, or cross over indicator. Ira
> >
> Ira,
>
> Since the market has been in trend up and then down I have not use
> stochastic, The books I read in the past saying that you can use in a
> different ways including trending market.
>
> Personally I find stochastic work best in nontrending market.
>
> How do use it or what is in your mind about stochastic you can tell
> us?
>
> Haytham
>
> To unsubscribe from this group, send an email to:
> realtraders-unsubscribe@xxxxxxxxxxxxxxx
>
>
>
> Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
To unsubscribe from this group, send an email to:
realtraders-unsubscribe@xxxxxxxxxxxxxxx
Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
|