Recently I did some reading about Stochastics.
How many time periods should / do you set for % K periods?
I read what is recommended recently, however I have no idea where I read that (online), then the piece said that the default would probably be suitable.
One platform I have access to is set at 14, while another I can access is (mt4) is 5.
so the first one is this 14, 3, 5.
Seccond (mt4) one is 5, 3, 3.
The Stochastics chart is significantly different between the two.
Where should I set it?
What is a good length of time for this?
Where do you set yours and why?
I am sure it will be a personal preference thing.
So please discuss.
It all depends of the system you use
If you want to incorporate stochastics to your system then you have to try different values and see which one works better. The most common values are 14,3,3 9,3,3 8,3,3 . i use 8,3,3 but remember what can work for me, maybe doesn´t work for you. SO you have to discover by yourself
It’s a balance between lag and false signals. The slower it is, the better quality it gets because it gets more laggy (i.e. hindsight is easy) and vice versa.
Try a few sets on the timeframe and use historical data to judge for yourself.