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    Stoch: Stochastic Settings

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    Bảo Khánh
    The document outlines stochastic settings and entry/exit signals for trading. It defines stochastic levels from 20 to 80, with K% at 3 and D% at 2 using a simple moving average. Entry signals include crossings over or under stochastic levels, interval reentry confirmation when the price stays above 80 or below 20 for a long time, and divergence signals over 70 and under 30. Exit signals include when a second peak does not exceed the first, and when an opposite stochastic signal occurs shortly after an entry signal.

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    Stoch: Stochastic Settings

    Uploaded by

    Bảo Khánh
    3 views3 pages
    The document outlines stochastic settings and entry/exit signals for trading. It defines stochastic levels from 20 to 80, with K% at 3 and D% at 2 using a simple moving average. Entry signals include crossings over or under stochastic levels, interval reentry confirmation when the price stays above 80 or below 20 for a long time, and divergence signals over 70 and under 30. Exit signals include when a second peak does not exceed the first, and when an opposite stochastic signal occurs shortly after an entry signal.

    Original Description:

    Stoch_03-09-08_update

    Original Title

    Stoch_03-09-08_update

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    The document outlines stochastic settings and entry/exit signals for trading. It defines stochastic levels from 20 to 80, with K% at 3 and D% at 2 using a simple moving average. Entry signals include crossings over or under stochastic levels, interval reentry confirmation when the price stays above 80 or below 20 for a long time, and divergence signals over 70 and under 30. Exit signals include when a second peak does not exceed the first, and when an opposite stochastic signal occurs shortly after an entry signal.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    3 views3 pages

    Stoch: Stochastic Settings

    Uploaded by

    Bảo Khánh
    The document outlines stochastic settings and entry/exit signals for trading. It defines stochastic levels from 20 to 80, with K% at 3 and D% at 2 using a simple moving average. Entry signals include crossings over or under stochastic levels, interval reentry confirmation when the price stays above 80 or below 20 for a long time, and divergence signals over 70 and under 30. Exit signals include when a second peak does not exceed the first, and when an opposite stochastic signal occurs shortly after an entry signal.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 3

    Stoch

    02-09-2008

    Stochastic settings

    Values Parameters Levels

    80

    K%=3 70

    D%=2 MA=simple 50

    Slowing=3 Pricefield=Low/High 30

    20

    Entry signals

    1.Crossings:

    ifitpassesover70butnotover80,waittogetunder70andthensell;
    ifitpassesover80,waittogetunder70andthensell;
    ifitpassesunder30butnotover20,waittogetover30andthenbuy;
    ifitpassesunder30,waittogetover30andthenbuy;

    80

    70

    50

    30

    20

    2.Intervalreentryconfirmation

    ifitstaysalongtimeover80orunder20,waittotouchthe50lineandthenentera
    trade.

    80

    70

    50

    30

    20

    3.Divergences:

    forreversaldivergencesthatoccurover70andunder30;

    4.Peakscomparison

    whenwehavetwosignalsofthesametype(bothbuy/bothsell),ifthesecond
    doesntexceedthefirst:

    80

    70
    Neitherdoes
    thisone.
    50

    Thispeakdoesent
    exceedthefirst.
    30

    20

    Complementation + exit signal

    ifitgivesasignalunder70/over30andafteraveryshortwhileitgivesanopposite
    signal,thewayinwichthepriceshouldmoveitsoppositetothefirstsignalandIts
    abigchanceforabigmoveinthatdirection.Assumingthatalongtermtradeis
    allreadyopenedandyouwouldnotdecidetocloseitonthefirststochopposite
    signal(meaningthatifyouareinasellandyoureceiveabuysignal,youwouldnot
    closethetradeasaresultofthesignalorviceversa)youcaneitherholdthat
    currentpositionoraddanewoneandexitonlyafterstochreturnsinthe2080
    interval).

    80

    70
    Close
    Buy
    50

    Sell

    30

    20
    Close

    REDtrader

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