There are such a lot of signals available in technical charting it’s infrequently difficult to know which to use. Some traders write off certain signals eg the stochastics for day trading, simply because it is often known as a lagging indicator and therefore they assume it is too slow for their purposes.
Frequently we are accustomed to seeing stochastics given in examples of trends on daily chart, talking about the price at the close of everyday. However, there isn’t anything to prevent a day trader from simply fixing the period of time to fit with the fifteen minute, 5 minute or even the one minute chart. The stochastic indicator is then just as handy for a day trader as it’d be for a trader following long-term trends.
Stochastics measure the difference between the last final price and the price movement over a certain previous number of time periods. You can adjust the quantity of time periods in your technical charting according to your system, but fourteen is the number often used. It appears to be a magical number for oscillating indicators, giving a long range to be comparatively correct without being so long that it loses significance for the present moment.
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