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Strategies & Market Trends : Befriend the Trend Trading
SPY 692.24+0.3%Jan 15 4:00 PM EST

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To: Dr. Stoxx who wrote (2401)12/4/1998 2:58:00 PM
From: Charles Kalb  Read Replies (1) of 39683
 
Thomas.......I have a question on your original BTTT system. I just reviewed the BTTT "rules" in several earlier postings and conclude that you have not fully defined the Stochastic indicator that is the backbone of the original system. Forgive me if I've somehow overlooked this information. You have stated that you did some testing on various Stochastic "lookback" periods and recommend 14 days. Without any additional smoothing, the resulting Stochastic would then be the so-called 14-day "Raw" or "Fast" Stochastic or %K. The Fast Stochastic, because it is prone to false or noisy signals, is generally not the form recommended in Technical Analysis references; instead, a "Slow" Stochastic is recommended which uses internal averaging or "slowing" of the numerator and denominator of the defining equation. This smoother version of the Stochastic requires input of the number of slowing periods. Some charting programs have a default value of three (3) slowing periods but higher values can be used. Using one (1) slowing period is equivalent to the Fast Stochastic.

Would you please post your officially recommended Stochastic for use with the BTTT system? Thanks.

Charles
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