Hi Dave,
First of all I would like to thank you for this wonderful website and the very informative videos I am sure you are helping out 1000's out there in the world.

I would just like to ask you what parameters you would reccommend when working with the Stochastic Oscillator and why you have chosen those specific parameters.
Thanks So much: ) ever considered in opening a group on Facebook with regards to technical analysis? A lot of my friends would be thrilled to have discussions with you

Best regards
Timon (South Africa)

[David Waring]

Hi Timon,

Thank you for the compliment I am glad you like the videos and are finding them helpful.

As for stochastics and pretty much any other indicator, I use the default inputs that come with the indicator. While many people really dial down and actually use indicators to generate signals I use them to simply give me a feel for something the indicator is designed to tell me about the market (in the case of the stochastic oscillator for me this would be overbought/oversold conditions in the market and divergences).

One thing to keep in mind with the stochastic oscillator is that there are three different types which are defined by different default inputs. The large majority of people however when they refer to the stochastic oscillator are refferring to the slow stochastic.

The default inputs for this are:

Number of Periods: 14

%K Number of Periods: 3

%D Number of Periods: 5

Method: Simple

Apply to: Close

For an overview of the slow stochastic go here:

Learn to Trade the Stochastic Oscillator Video

For an overview of the differences between the fast, slow, and full stochastic go here:

The Difference Between the Fast, Slow, and Full Stochastic

If there are any other questions, comments or things that should be added to this feel free to post below.

Best Regards,
Dave

[David Waring]

Hi Timon,

Just realized that I forgot to respond to your question about starting a Facebook group. One of the primary purposes of InformedTrades is to allow people to discuss trading and learn from each other. When we originally decided to build a community we decided to do it on our own platform as this way the community can help decide how its built, which would not really be possible if we did it through a third party platform like Facebook.

So anyways while we may do some things on Facebook in the future our goal there will be more to promote and help build the InformedTrades community so people can interact and improve the community here. With this in mind I if you or anyone else knows of anyone who would find these discussions useful I encourage you to point them towards joining our community here.

Best Regards,
Dave

[timonr]

I highly appreciate your feedback Dave, Unfortunately I am one "client" if I can say that, that has a few enquiries with regards to the Technical Analysis aspects to the stock market.

Thanks again
Regards
(A highly satisfied customer)
Timon

[David Waring]

Hi Timon,

My pleasure glad to have you aboard and feel free to fire away with the questions as the come to mind thats what we are here for.

Best Regards,
Dave