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Strategies & Market Trends : TA Science Projects & Experimental Indicators

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To: ftth who wrote (212)6/27/1998 2:34:00 PM
From: Sal D  Read Replies (1) of 237
 
Dave, just some thoughts on stochastics, they can be helpful. This is how I use this indicator. At least 4 years of data is needed, view on weekly charts. Look at a short, intermediate and long term and compare there relationships with one another. For short I use 3x3x3, intermediate 10x10x6, and long 39x26x13.
Positions on the long side are taken when short term signals are moving in the direction of the main trend and that the primary trend is not overextended.(i.e. look for a short term buy signal with the intermediate and long term are in an oversold condition and reversing to the upside). I agree short term stochastic signals happen to often but if you filter them with intermediate and long term charts as well you get a better picture. Of course this is just one indicator and confirmation from your other indicators and trendlines is also needed but don't give up on the stochastics it can be useful. This is just my opinion but thought it might help. Give it a try and good luck.
Joe
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