DM; Stochastic time period depends on your own personal time frame. Your 5 days goal, suggests a short period, such as 5 or 8 day. However, it is wise to examine 2 and often 3 periods surrounding your time frame in order to observe overall conditions(one faster, one slower. E.g. if a long term (21 day) Stochastic is down but the short term is up, you may not want to get in, (if you do, it should be a quick trade). If 21 day is up and 8 day is up, it is likely to be a better risk.
So, period is up to you and, examine multiple periods. Lastly, don't forget to incorporate this with an overall, multi-indicator system.
Good luck! |
