The chart on this post (#1059) totally confused me, in the 3 circled buy spots I don't see any IB's in any of them what am I missing?
And why bother looking at the 1hr chart if your only going to take trades based on the 15min trend as shown
Quote:
Originally Posted by james
Hi there James here
My Own use Of Stochastics
Well as usual just to be contrary to everyone I don't use the stochastics to signal overbought or oversold although I do take note of the readings.
I like to use them as possible buy and sell opportunities after defining a trend. If the trend is up as in the example below on the AUD (Australian Dollar) I like to only take buy signals regardless of the reading as long as the trend remains in place.
I ignore the sell signals. I purposefully weaken the stochastics to give me more signals and I use 8,3,3 as my settings.
This gives more signals and shows the hand of the weaker players. The same is true of selling in a down trend. I ignore the buy signals and only take the sell signals. I don't use stochastics on their own as trading method as all the settings I have tried ultimately resulted in to many wipsaws. Experiment with different settings and consider adding this indicator to your trading arsenal.
james
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