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Old 07-20-2008, 02:49 PM
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David Waring David Waring is offline
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Join Date: Nov 2007
Location: Miami, FL
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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
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Disclaimer: Trading is risky and can result in substantial financial loss. As always my posts are simply one traders opinion and should not be taken as trading advice. I am not a financial adviser so everyone please do their own analysis and take responsibility for their own trades.
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