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> George Lane originally setup his stochastic to work on EOD data and he uses
> 14 bars as his lookback period because it is 1/2 of the lunar cycle.
That's interesting. The lunar cycle is actually about 22 trading days
and half that is 11.
Many oscillators should be set to half the cycle length but I think the
stoch, at least in the unsmoothed version, is an exception. It should be
set to the whole cycle length. The gif shows what I mean. Of course,
smoothing the stoch with averages, as is commonly done, adds lag, so you
need to shorten the period somewhat, unless you are using zero/low lag
smoothing.
--
Dennis
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