To: Berney who wrote (5331 ) 1/31/1999 10:50:00 PM From: MonsieurGonzo Read Replies (3) | Respond to of 11051
TB; RE:" stochastics %K & %D " >I use a stochastic setting of 23 & 5... ...for what, daily charts ? FWIW on daily charts, what I do is start off by seeing how a nominal 14-day EMA "fits" the chart. Then I'll fiddle with this from 8-day to 24-day and look for a short-term EMA line that appears to "indicate" something for that particular chart. I always fit the short-term EMA before setting up the stochastic oscillator. I usually start off with %K = 1/2 the best fit short-term EMA, and then fiddle with that up or down, to see what that does - perhaps re-adjusting the short-term EMA again - until the short-term EMA on the chart is indicating "trend" support and resistance, and the %K stochastic is indicating "dips" and "peaks" of folks jumping off and on the train :-) Unlike most T/A'ers, I do not use "%D cross %K" as a buy or sell signal; rather, I look at %D to indicate "overbought" or "oversold", and so usually set %D at a very sensitive 3. You have to completely re-set all this stuff when you switch over to weekly or intra-day charts. For mo , I mark the idealized buy and sell points on the chart with vertical lines, then begin with a nominal value of mo = 64 days. I'll fiddle with this value from ~48 to ~72 to see what this appears to indicate, and how it aligns with the ideal "buy" and "sell" marks on the chart. I do not have much experience with "mo ", but mo appears to be useful for CCALL writing and/or adjusting leverage. I know you also use MACD, Berney - I haven't played much with that; and I think DJ has some experience with Bollinger Bands ? Dudes' T/A test for February...geocities.com (^_^) ...short-term EMA is 14; %K=8 & %D=3; mo = 59. -Steve