| SilverClayON - 3/9/2016 06:17 Looking at a weekly continuation chart in corn going back to 2013 stoch's have accurately pinpointed the high's (give or take a few cents) in nearly every $.50 rally. Does anyone sell based off these signals alone? Would definitely take emotion out of the equation when you can set a target of "when the blue line crosses the red line in overbought territory (75%+) sell X amount of production". Hi SilverClayON, I am sure many do. Stochastics are a tool, and like pliers,..there are big ones and smaller ones - and not one size does all jobs. I know of no single indicator that you run exhaustive backtesting on, that makes money. Not one. Any of them will for a time, then the structure of the market changes, and they are out of sync, and fail horribly. Indicators struggle to include the market context in signals, and that that is why they fail. Context matters. Take Care. |
Selling based on stochastics
