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Strategies & Market Trends : Trader J's Inner Circle -- Ignore unavailable to you. Want to Upgrade?


To: DM who wrote (2220)12/17/1998 8:30:00 AM
From: Kevin Shea  Read Replies (3) | Respond to of 56535
 
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!