Chapter | 3CHOOSING AND ADJUSTING PERIOD SETUP FOR OSCILLATORS
As the Stochastics indicator is one of the more widely used studies in the industry, it is a good place to begin a discussion about how to set up initial periods. As mentioned in the first chapter, quote vendors use the same default periods for their studies. Stochastics is generally one of the first studies that novice technical traders will add to their market data, allowing professional traders to use this knowledge to their advantage for short-horizon market moves.
The S&P 500 futures market can be graphed in three-minute time intervals. But clearly this would be ridiculous when the market is moving 20 S&P points in a minute. Markets sometimes adopt entirely different personalities ...
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