What is the best setting for Stochastic?

80 and 20 are the most common levels used, but can also be modified as required. For OB/OS signals, the Stochastic setting of 14,3,3 works well. The higher the time frame the better, but usually a H4 or a Daily chart is the optimum for day traders and swing traders.

What time frame is best for Stochastic RSI?

As mentioned before, the normal default settings for RSI is 14 on technical charts. But experts believe that the best timeframe for RSI actually lies between 2 to 6. Intermediate and expert day traders prefer the latter timeframe as they can decrease or increase the values according to their position.

What are the best settings for slow Stochastic?

The default Slow Stochastic settings are:

• %K – 5 days.
• %K slowing periods – 3 days.
• %D – 3 days.
• All are simple moving averages.
• overbought level – 70%
• oversold level – 30%

How do you use RSI and stochastic?

In order to do that, analyse the highs on the price chart and in the RSI window. When you discover that the RSI line creates higher highs, check if the price is making lower highs at the same time. If this is the case, wait for the cross down on the Stochastic. This will be a signal to enter a short trade.

How do you use Bollinger Bands effectively?

Another strategy to use with Bollinger Bands® is called a squeeze strategy. A squeeze occurs when the price has been moving aggressively then starts moving sideways in a tight consolidation. A trader can visually identify when the price of an asset is consolidating because the upper and lower bands get closer together.

Is Bollinger band good for day trading?

Bollinger bands can help you establish a trend’s direction, spot potential reversals, and monitor volatility. They can help you make better trading decisions if you follow a few simple guidelines.

Is stochastic RSI or stochastic better?

The Bottom Line. While relative strength index was designed to measure the speed of price movements, the stochastic oscillator formula works best when the market is trading in consistent ranges. Generally speaking, RSI is more useful in trending markets, and stochastics are more useful in sideways or choppy markets.