Stochastics Settings

Can someone that uses stochastics please help me.

I 've been playing around and modifying the settings for a "smoothed out" slow stochastics settings. I was at one of the free previews for "Teach Me To Trade" a few years back, and they had a nice "smoothed out " curve.

Does someone know what parameters they used or can someone recommend some effective parameters to "smooth out" the stochastics.

I appreciate any response.

Thank you.

OneSport3 said:

Can someone that uses stochastics please help me.

I 've been playing around and modifying the settings for a "smoothed out" slow stochastics settings. I was at one of the free previews for "Teach Me To Trade" a few years back, and they had a nice "smoothed out " curve.

Does someone know what parameters they used or can someone recommend some effective parameters to "smooth out" the stochastics.

I appreciate any response.

Thank you.

Click to expand...

It is not just a question of smoothing out the stochs, but also whether such smoothing produces meaningful signals. Having said that, one can attempt to use a single setting (e.g., (13, 3, 3), (21, 13, 8), etc.) that will produce acceptable results for various markets and time frames. Or you can optimize for specific markets and time freams. The route you take might also depend on whether or not you intend to use them by themselves or in conjuction with other studies (recommended, imo).

I have been using regular stochastic, not the slow (which is too slow), 21 3 for medium term and 5,3 for short term. Both work very well.

A successful day trader I knew used 20, 12, 9. Nice smooth result, but I haven't managed to repeat his success. He used to target divergences which would give him c30 point moves.

I like to use 14,3,3,SlowD on a 5min DAX chart mixed with price action. I find on a monthly basis it gives consistent results (most of the time). Doesn't look too bad either on the Mini Dow, Stoxx50 and ES Mini, but they need more work.
IMHO I think you should stick to one setting and work with it rather than keep optimising.

Cheers
C

I agree that optimising is a waste of time. I do find that the standard settings of 21,3 and 5,3 are best. You opnly need 3 periods for the slow stochastic which I don't use.

GruntoWay

May I ask what you trade and what time frame you use?
I've found that stochastics on a very short time frame can be too 'whippy' whatever the settings!

C

I trade anything that moves. I keep changing. At the moment its CFD's on shares (pairs trades) and indices (which I prefer). I trade short term with the medium term in mind. I trade with the trend and use the stochastics to pick the best times to enter. I don't use tjem for buy and sell signals because then they are too whippy.