Scott, you are absolutely right, this is the worst problem we have with this method; it is the Achilles's heel. I've seen one of the stochastics be at 90% or above for a very long time, meaning the price on that pair has just climbed and climbed, while the other stochastic has come up just a little, making the difference go down (when the difference in price is really going up, not down).
If you have a solution to this I think we are all ears; I know I am!
Looking forward to hearing from you when you can.
If you have a solution to this I think we are all ears; I know I am!
Looking forward to hearing from you when you can.
DislikedThe problem with Stochastics is they can be overbought or oversold for a very long time. This makes it difficult to have confidence in the difference between the two stochastics. I have been thinking about this problem, which seems to be the biggest hurdle in this method. I think a have come up with a algorithm to equate two or as many pairs as you want to each other and not have to rely on...Ignored