Hi Myron. It's always dangerous to try to interpret what someone meant from someone else's interpretation of what they said, but here goes anyway.
I normally don't worry about the formulas that are used to create the various indicators. For my trading, I'm a chart interpreter, not a designer.
Here's what you may be looking for.
With Stochastic, without getting needlessly complicated, the %K Line is derived from a formula that measures the relationship between current price and range of price over some period. The %D Signal Line is a Moving Average of the %K Line. I think.
Therefore, if you create a Full Stochastic indicator for a chart, using the settings 30,15,10 in the boxes available, you may have the Stochastic you're referring to. The %K (Moving Average?) will be 10. Thus a cross of the Stochastic will be a cross of the 10 day MA. Maybe.
Try creating a chart with only price, Full Stochastic with 14,3,3 and Full Stochastic with 30,15,10.
You'll see the 30,15,10 gives a much smoother pattern, with far less signals. This may work well in certain circumstances, and in conjunction with other indicators, as you say.
For my part, I think it's important to use the same chart settings as much as possible. That allows my eye to become familiar with patterns produced.
Cush |
