Beginner Foray with Stochastic Oscillator

[soul786]

Originally Posted by tymen1

I have seen many efforts on this forum to use crossovers - all to no avail.

I'm personally posting here as proof to this statement. Tried, tested, didn't go so well, and have since moved on from MA Crossovers.

[tymen1]

Thank you soul786

Even with the time honored MACD, Gerald Appel gives very specific and specialised rules for using it in his book "Technical Analysis - Power Tools for Active Investors", 2005, Pearson Education.

[pipso facto]

Originally Posted by tymen1

Not taking me seriously.

Ever heard of the MACD?

Graduate to that with the signal line and you are streets ahead.

If you try something like a crossover of Tema with Dema, you will come unstuck.
If these MA crossovers were so great, everyone would use them.

I have seen many efforts on this forum to use crossovers - all to no avail.

Sounds like SOMEthing's stuck between Tema and Dema alright.

Anyhoot, so if I get what you're saying, Moving Averages Crosses don't work but Moving Average Convergence Divergences do?

I bow to you great Master; your logic is superior to mine

[pipso facto]

Originally Posted by soul786

I'm personally posting here as proof to this statement. Tried, tested, didn't go so well, and have since moved on from MA Crossovers.

That's strange; they work fine for me. Oh well, to each his/her own

[tymen1]

Originally Posted by pipso facto

I bow to you great Master; your logic is superior to mine

No need to be sarcastic about it.

I speak from my own testing experience - and it lines up with the experiences of others doing the same.
If you don't believe me, then try it yourself on your demo.
You will come to the same conclusion as we have done!!

Why do you think we have the MACD?
It cuts out much of the lag.

[trav72]

Originally Posted by tymen1

No need to be sarcastic about it.

I speak from my own testing experience - and it lines up with the experiences of others doing the same.
If you don't believe me, then try it yourself on your demo.
You will come to the same conclusion as we have done!!

Why do you think we have the MACD?
It cuts out much of the lag.

the COWABUNGA system developed and used by Big Pippin since the inception of the forum and his follows and supported by the BABYPIPS admin uses a simple 5/10ema crossover system with stochastics as further confirmation.
It has provided success for many traders over a lengthy period

[tymen1]

Originally Posted by trav72

the COWABUNGA system developed and used by Big Pippin since the inception of the forum and his follows and supported by the BABYPIPS admin uses a simple 5/10ema crossover system with stochastics as further confirmation.

But it uses stochastics!!

And there is a bit more to it, is there not?

Look, I am not going to start an arguement here.

Use whatever you like - its your money and your trading.
The consequences are yours also!!

[pipso facto]

Originally Posted by tymen1

No need to be sarcastic about it.

I speak from my own testing experience - and it lines up with the experiences of others doing the same.
If you don't believe me, then try it yourself on your demo.
You will come to the same conclusion as we have done!!

Why do you think we have the MACD?
It cuts out much of the lag.

I apologize for the sarcasm. Look man, I ain't trying to convince anyone of anything, what do I care. But I've tested and used systems based on moving average crosses quite successfully, so I'll explain again, this time sans sarcasm:

The MA in MACD means Moving Average. So you can't, at the same time hold that Moving Averages don't work AND that MACD do.

The C and the D in MACD mean Convergence and Divergence. When the MA's are Converging, it means that the MA's are nearing each other, or about to cross. If they are Diverging, they are trending apart, away from crossing. So you're measuring the same thing, just expressing it differently.

As to your last point, "cutting out the lag" is inconsistent with Moving Averages. A Moving Average IS a lag. It ALWAYS lags the price. That's the whole idea behind them. So if you want to cut out the lag a little, then shorten your parameters a little. If you don't like lags at all, don't use moving averages, MACD included.

[soul786]

Tymen has a quite successful system using candlestick patterns; needless to say he's a PA kind of guy. A lagging indicator doesn't fit the fill.

Anywho, from what I say earlier about my losses with using MA crossovers... the system is based SIMPLY on a crossover which I should have mentioned. Hence, fakeouts occur quite a bit. Without additional confirmation you're toying with disaster. Can the system be tweaked to be profitable, yes. Would it be worth it in the end, I stopped to early to give it a chance.

What I'm saying (and I'm sure Tymen is also), is that JUST a crossover is nothing to base a system on. Too many things can go wrong. I think we can all agree MM is a key part of any system, additional confirmation (whether it be with other indi's or PA patterns) is needed also.

[pipso facto]

Originally Posted by soul786

Tymen has a quite successful system using candlestick patterns; needless to say he's a PA kind of guy. A lagging indicator doesn't fit the fill.

Anywho, from what I say earlier about my losses with using MA crossovers... the system is based SIMPLY on a crossover which I should have mentioned. Hence, fakeouts occur quite a bit. Without additional confirmation you're toying with disaster. Can the system be tweaked to be profitable, yes. Would it be worth it in the end, I stopped to early to give it a chance.

What I'm saying (and I'm sure Tymen is also), is that JUST a crossover is nothing to base a system on. Too many things can go wrong. I think we can all agree MM is a key part of any system, additional confirmation (whether it be with other indi's or PA patterns) is needed also.

I'm sure Tymen does quite well for himself but that doesn't mean he can make false claims.

Candlestick, lipstick or any other sort of patterns ALSO lag the price. When you find an indicator that LEADS the price, let me know as I'm very interested.