Slow Stochastic Oscillator.
Hi Jay. As you suspect, the Slow Stochastic that I use is just the ordinary formula, but simplified by 4 modifications :-
(1) %D moving average is not used as the trigger and is not plotted at all.
(2) A 50% crossover is used as the signal level, rather than the usual 20% and 80%.
(3) A much longer period is used for %K, in this case 80 days rather than the usual 5 days.
(4) Generally, smoothing (slowing) is not used.
These modifications mean that the oscillator can be used just like an ordinary trend-following indicator.
I got this idea from Colby and Meyers "Encyclopedia of Technical Market Indicators". They found that such a setup outperformed the original system as developed by George Lane.
Slow Stochastic Oscillator
Thnaks for the answer on the above.
I toyed with the idea of buying FPH, due to the same buy signals you mentioned on that thread probably, but so far I have not pushed the buy button.
Thanks But I slill like Contrarianism
Hi Phaedrus,
Really apreciate a fellow techies posting, your chart supports my theory of contrarian investing buying in Doom selling in Boom!
Back test buying in the middle of your caution ranges on spiking lows and Selling 1.5 times the caution range out or on any double top!
Well then get the $$$ ready for thr next buying spell, but what will that white bearded gentleman in a red suite bring???
Update of Original Chart.