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- #286
- Oct 30, 2008 7:25am Oct 30, 2008 7:25am
I do not trust this indicator.
Let's be more constructive and not just throw some words just because we (dis)like... it's better to give some arguments... it's a forum. so let's discuss and not only point the finger.
I agree with Kuduzu's curiosity (\"why is that?\") and with the argument that with the optimal settings (I'll add with a specific pair and/or on a specific tf) most of the time (again, any indi has it's limits) is very useful.
Let's be more constructive and not just throw some words just because we (dis)like... it's better to give some arguments... it's a forum. so let's discuss and not only point the finger.
each pair has its own unique traits. with a little effort and screen time we can learn the characteristic of each pair, tf and of course how the Stoch works.
I think the biggest mistake that the new trader makes is to assume that every time the %K crosses the %D that it's a buy or sell. We have to learn where it crosses on the chart for best entry and if it is just an indication of continuance or reversal.
Once you can read the difference it's like a bright like coming on in your head. Wow - "I can see it now."
best wishes to all as you learn the Stoch
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- #288
- Oct 30, 2008 8:07am Oct 30, 2008 8:07am
We have to learn where it crosses on the chart for best entry and if it is just an indication of continuance or reversal.
) yesterday and you remind me of it (I intend to think that it's the same).The fact is that the stoch - as any indi - is based on the info received from the price itself (nothing new here). If we ask ourselves why indis say almost the same thing in certain situations [giving a good entry signal or - all of them - giving a totally inconsistent signal (being fouled by the chart)] we will reach to the conclusion that, because all the indis are based on the price action - the best indi it's the price itself (that's why for a long time I've traded only using price action - levels, trends, figures and candles).
The point is that you can just watch to that specific pair that you trade everyday and observe the patterns associated to a signal (entry point). In this way - by recognizing the pattern - you can enter before receiving the signal from the indi - of course after some time the indi will give you the signal but you got in early
. I've been doing this for a while - not on all the signals - but without the purposed idea of always (or most of the time) entering before the signal... I've did it just because I recognized the pattern.
- #289
- Oct 30, 2008 11:10am Oct 30, 2008 11:10am
I had an idea (or should I call it revelation
The fact is that the stoch - as any indi - is based on the info received from the price itself (nothing new here). If we ask ourselves why indis say almost the same thing in certain situations [giving a good entry signal or - all of them - giving a totally inconsistent signal (being fouled by the chart)] we will reach to the conclusion that, because all the indis are based on the price action - the best indi it's the price itself (that's why for a long time I've traded only using price action - levels, trends, figures and candles).
The point is that you can just watch to that specific pair that you trade everyday and observe the patterns associated to a signal (entry point). In this way - by recognizing the pattern - you can enter before receiving the signal from the indi - of course after some time the indi will give you the signal but you got in early
in my case I have been able to translate basic traits of price action into how I read Stochastics.
for example:
there are ways to read Stochastics to confirm support/resistance, divergence, range vs. trend, momentum of a trend and points of reversal or retracement. All these things can be see in the Stochastics if you have...
a. the right chart settings for multiple stochastics
b. know what to look for as the stochastics move right before your eyes.
good thots Red
