CT's dashboard has both. Rebyte2 just added the stoch to his indicator at the bottom for comparison, it looks nice as well.trueblueTEX wrote:I've only used the Stoch version from the v1.02 template. I have traded this for 2 weeks and paid VERY LITLE attention to it this last week. Even so, I've increased a $500 demo account to $547; nearly a 10% increase.lhDT wrote:I saw bob talking about Stoch 5,3,3 as a RSI2 replacement. Who is using it instead of RSI2 ?
I've not made anywhere as many trades as most here. I have looked at several of the 10.4 meters (including yours) almost exclusively to decide to enter or not. I look at the chart that the meters have shown to be potentials if it looks good and 240 is not "too far" (this is subjective) then I place a pending.
I kind of like the idea of having both Stoch and RSI on the same meter.
Short period rsi(2) on slope is interesting because it basically functions as a switch. It has interesting behavior as an oscillator. It switches early and sticks. It is cool as a heads up. But useless on the H4 for any sense of when price might turn. It is sensitive coming in, slow to leave.
Short period stoch on price, just flies back and forth in faster waves. We are just clipping the signal, to avoid getting sucked in, by it's false return signals. There is different math at work. One is reading advance vs. decliners of slope bars, and smoothing. The stochastic is a play off relative strength of price directly, it's characteristics are well known (and don't capture my imagination).
Both tools are deadly in the hands of skilled operator. I like stoch, but have seen it for decades and can't be bothered with it. I know other systems have used the short RSI(2) directly on price, but its application here I found interesting.
I'm lovin the original as I find it's behavior useful and innovative. Stoch 5 is a quick hack to save cpu cycles. You must filter by eye and experience and we are using a trick to clip it and hide useful information from ourselves. To me it is an approximation of a signal that is really quite striking. A body kit doesn't make a Honda an R8.
Two bits. This will be a personal preference thing.
Mike
In a trend that idea will crush it as you get in on all the pullbacks, chops and turns will be painful. Playing one side of an oscillator in a trend will always work. It the other bits that are tricky.