Stochastics

[quesera]

I've been having some success using stochastics together with heiken ashi indicators trading forex mainly on the 60 min chart, but am trying to plug a gap. Sometimes the stochastics gives false signals, so I would like something that could warn me of this. Can anyone recommend anything?

Thanks.

 

[Black Swan]

No...you're looking for TA to singularly solve your trading issues, it won't and I'm speaking from the position of being a hard core technical/probability edge trader..

 

[Splitlink]

I've been having some success using stochastics together with heiken ashi indicators trading forex mainly on the 60 min chart, but am trying to plug a gap. Sometimes the stochastics gives false signals, so I would like something that could warn me of this. Can anyone recommend anything?

Thanks.

I've tried them all. The problem is that they are based on averages and these are, sooner or later, going to give a false signal. Just put an average on the chart and you will see it happening at whipsaws and trend turns. Some use more than one indicator to try to get confirmation and, of course, you have to decide on which is the best average to use. I'm not going to try to tell you that they are no good, most of us --me included, have had to go through the indicator process.

Good luck to you.

 

[bevok]

False signals are a normal part of any kind of trading. Don't lose too much when you experience them, and don't nab tiny profits when you don't. I've found if indicators are to have any value it tends to be on the longer timeframes.

 

[Splitlink]

False signals are a normal part of any kind of trading. Don't lose too much when you experience them, and don't nab tiny profits when you don't. I've found if indicators are to have any value it tends to be on the longer timeframes.

I am currently using 30M and 60M TFs with some success, but don't you think that the small TF bars give a better signal than any of the indicators could? They are, at least, giving the picture as it is taking place.

 

[bevok]

Well everyone has a different perspective, but I think most of the action in the short timeframes is just noise, it seems easier to make money when you're trading with the bigger longterm trends that are fundamentally based and that have the conviction of big players behind them. Short term action is really just the ebb and flow of orders being filled, quite random most of the time and more easily manipulated.