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Showing posts from September, 2016

Stochastichs: Slow, Fast, Full?

What kind of stochastics should be used in the chart? Stochastics is an oscillator that shows overbought and oversold conditions. There are three types of settings: fast, slow and full.  Fast Stochastics %K is set to 3. This is the fast moving line in the indicator. Slow Stochastics %D is set to 3. This is the slow moving line in the indicator. Full Stochastics The full stochastics includes both %K settings, %D settings as well as the day period that the indicator takes into consideration (5-day, 10-day...) The recommended full stochastics setting for swing trading is 12,3,3 (Period= 12, %K= 3, %D= 3) The recommended full stochastics setting for day trading is 5,2,2 (Period= 5, %K= 2, %D= 2) Please bear in mind that stochastics oscillator is a lagging indicator. In addiiton stochastics only takes into consideration price and time. It does not include volume into its formula. Therefore it is an limited indicator. Good trading! Trading Risk Disclaimer All the informa

Candlestick analysis: Difference between Doji and Spinning Top

Question for a student: "I still dont see the real difference between spinning top and doji. They both basically need further confirmation. What am I missing?" Spinning Top and Dojis are very similar and they mean the same thing: Doji indicates indecision. Spinning Top indicates greater indecision. When looking at the two signals, the difference is in the body of the candle. The Doji opens and closes around the same level (almost the same price). The Spinning Top has a slightly bigger fluctuation between the opening and closing price, giving the body a bit more form. Got a question? Write to us Good Trading! Trading Risk Disclaimer All the information shared is provided for educational purposes only. Any trades placed upon reliance of SharperTrades, LLC are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, cryptos, commodities, options, forex and other trading securities, th