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# Chapter 12, Part IV. Stochastic. - Q&A

Discussion in 'Complete Trading Education- Forex Military School' started by Administrator, Jul 7, 2011.

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So what are the numbers I plug in for the stochastic?

3. ### Sive Morten Special Consultant to the FPA

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Well, I use 8;3;3, default settings usually are 14;3;3

4. ### oficiuljuridic Recruit

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Hello Sive,

Can you please tell me aditionally what kind of MA method do you use for Slow Stochastic: exponential MA or smoothed MA?
Also in MT4 platform at "Price field" are two options:Low/High and Close/Close. Which one do you use it? I want to set parameters exactly how you use them.
And finally what levels do you use for signals of Slow Stochastic: 20/80 (default in MT4) or 25/75 and for what timeframes (H1 or H4)?

Thank you in advance.

5. ### Sive Morten Special Consultant to the FPA

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Hi Oficiuljuridic,
Well, in general I do not use Stochastic very often.
I use smoothed method of averaging for Stochastic, applied to close.
I do not use levels for Stochastic, since I do not use it for oversold/overbought analysis. Due to the approach that I apply - for me only crossover makes sense.
I use DiNapoli technique of MACD and Stochastic combination for trend identifcation.

6. ### oficiuljuridic Recruit

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Hello again Sive,

So, please tell me if I understood corectly.
If I apply your aproach in using Slow stochastic for 15 min, 30 min or H1 timeframe, the signal for entering in the trade is when the fast line crosses slow line, no metter if this happens in or outside the extremes zones.
I set slow stochastic with 8,3,3 on close prices and on historic data I noticed that statisticaly it gives very good signals (on 15 min and 30 min and on h1 timeframe) almost at every crossing independently of the zone in which the crosing occurs.
Please tell me if I understood wrong.
Thank you again for your help.

7. ### Sive Morten Special Consultant to the FPA

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Hi oficiuljuridic,
not quite. I said "I use DiNapoli technique of MACD and Stochastic combination for trend identifcation"
It means that I do not use just Stochastic alone - only in link with MACD.
Second, it depends on purpose of using. I use for trend identification, particular checking Fib levels/strength.
If you use stochastic for oversold/overbought analysis - this is quite another story.

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