Thursday, May 5, 2011

My Favorite Indicator

My favorite technical indicator is the modified stochastic with a fractal stacked on top of it.  Usually a fractal indicator is placed on a chart and not on another indicator.  It is actually supposed to confirm trend.  I change the values on the stochastic for different pairs and different time frames.  For example,,,,,,,,,,,,what would be a good period for the five minute charts would get you killed on the daily charts.  Mine here on the 1 hour chart is 21 ,13, and 5.  I actually sold a large lot last night because of the five daily dojis that were showing on the chart (and I know technically that all five candles were not dojis).......Anyway when I looked at the 1 hour chart then I had some good confirmation on the stochastic.

1 comment:

  1. Now from an Elliott Wave perspective, This looks to be an impulse wave that is in a 4th wave. We can't be sure of that yet. It will either have to make new lows to confirm impulse or break the 1.4806 to confirm a corrective wave....... I closed my short 4 hours ago and am waiting for some confirmation

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