Stocks & Commodities V. 42:10 (18–22): Can A Stochastic Indicator Be A Trading System? by Perry J. Kaufman

Stocks & Commodities V. 42:10 (18–22): Can A Stochastic Indicator Be A Trading System? by Perry J. Kaufman
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Can A Stochastic Indicator Be A Trading System? by Perry J. Kaufman

Are signals from the ever-popular stochastic oscillator reliable enough to be used in a trading system? This test might help you decide.<.i>

Many of us use the stochastic indicator to time our entries and exits. It’s a simple calculation that has proved valuable. It tells us where the current price is within the recent high–low range. It comes in three versions: the raw stochastic, the smoothed, and the twice-smoothed smoothed ...




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