Which Chart Should be used to help Buy and Sell stock with Stochastics?

Mar 29, 2010

Stock Simplified Writes
by: Shaun

Yes the Slow Stochastic can often times contradict itself when it is looked at in different time frames. (just like all Oscillators) That is because it is possible for a stock to be bullish in the “long term” while at the same time being bearish in a shorter time frame.

For instance the Stochastics for the daily chart may be bullish for 1 week, but the Stochastics for the 5 minute chart may have had 100s of buy and sell signals within that same timeframe.

The best thing to do is to pick one timeframe and use all of the indicators for that timeframe. If you want to be in and out relatively fast the 3 month Stochastic will probably be the most helpful. On the other hand if you want to catch the longer term trends the 10 year Stochastics will work better.

The key is to stick with the same indicators and time frames. If you buy a stock based on what the weekly Stochastics says then it is better to stick with that original signal and not sell based on what the daily Stochastics is telling you.

That is the idea behind these indicators anyways. You are supposed to stick with the same time frame you originally got into the trade with.

Which Chart Should be used to help Buy and Sell stock with Stochastics?

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Which Chart Should be used to help Buy and Sell stock with Stochastics?