Hi,
I have a problem with the stochastic indi, I suppose that is the same problem that many people have.
I love the stochastic indicator, I use a similar strategy than the FF Thread "Escalator Pips" just Google it if you want to find the whole system.
Anyway the system uses the stochastic on different time frames; it looks at the slope of the indicator not at the crossover. Trades on the 15 min chart and looks at the stochastic on the following time frames: 15-30-1H-4H
In any case the problem that I found with the stochastic especially when you use it on multiple time frames is that when the indicator reaches oversold or overbought levels and stays there the indicator starts to do funny things since the indicator is bounded and cannot go up or down more it changes direction when it should not.
My question is that since is such a popular indicator if anyone has found a solution for this. Maybe has created a similar indicator without that problem or there is a similar indicator that does not have that issue please share the indi or advice
Thanks
Kind regards
I have a problem with the stochastic indi, I suppose that is the same problem that many people have.
I love the stochastic indicator, I use a similar strategy than the FF Thread "Escalator Pips" just Google it if you want to find the whole system.
Anyway the system uses the stochastic on different time frames; it looks at the slope of the indicator not at the crossover. Trades on the 15 min chart and looks at the stochastic on the following time frames: 15-30-1H-4H
In any case the problem that I found with the stochastic especially when you use it on multiple time frames is that when the indicator reaches oversold or overbought levels and stays there the indicator starts to do funny things since the indicator is bounded and cannot go up or down more it changes direction when it should not.
My question is that since is such a popular indicator if anyone has found a solution for this. Maybe has created a similar indicator without that problem or there is a similar indicator that does not have that issue please share the indi or advice
Thanks
Kind regards