Intraday Applications of stochastics
What is stochastic ?
The detailed explanation can be found here....
http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:stochastic_oscillator
There are 3 types.
1. Slow Stochastic
2. Fast stochastic
3. Full stochastic
We shall consider Slow stochastic as it will produce slower oscillations.
Basic approach to SI :
1. %K and %D crossover signal
One method of SI timing is to use Slow SI for Buy and Sell signals on crossover of %D and %K SI lines
We will use 8 period first....
5 minute time frame
15 minute time frame
30 minute time frame
Now we shall increase the time period from 8 period to 24 period and see what difference does it make
5 minute time frame
15 minute time frame
30 minute time frame