NobleFINALFeb 10, 2023 · 3 years agoOne strategy to optimize the stochastic oscillator settings for a 5-minute chart when trading cryptocurrencies is to adjust the periods. By experimenting with different values for the %K and %D periods, you can find the settings that work best for the specific ... More on bydfi.com

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Never use a statistical indicator without understanding the formula behind it and what it is supposed to show. Learn about its weaknesses more than it’s strengths. https://www.investopedia.com/terms/r/rsi.asp Also from your questions it looks like you might have just started out. So if you don’t mind me giving you a bit of advice: the best indicator is knowledge! So start reading every you can find online! Data >Knowledge+Analysis >Insight > •Edge• >Profit https://www.investopedia.com/articles/active-trading/022415/vital-importance-defining-your-trading-edge.asp More on reddit.com

I have been using the Stochastic indicator for over 20 years fairly consistently. Things to note: I use a slow stochastic 14,3,3 with 75OB, and 25 OS. I only use the stochastic as a filter. Looking for oversold in uptrend or overbought in downtrend I do not use %k/%d crossover for entry signals, I only use trend reversals in a lower time frame Stochastic (as other indicators) are based on price and time. As trend slows and enters a range overbought and oversold signals will generate often and quickly. Verify range for profit opportunity in these situations, especially if using on an intraday chart on low time frames. I do not look for divergences, but they can be helpful. In very strong, high momentum markets signals are typically not generated and when they are it’s generally very late in the trend. Nothing is perfect, moves are missed, entries are made and can still lose. Risk management is paramount to your longevity as a trader. I apply it using Multiple Time Frame Analysis with the premise that when a security is oversold in the intermediate time frame as it relates to a higher time frame trend it would suggest that the stock COULD be closer to moving from the corrective phase to the next impulse phase as it relates to the higher time frame trend.  I then rely on price action in a lower time frame to identify a downtrend reversal suggestion that the security is now moving into the next impulse and that the correction is over.  The opposite is of course true for downtrends. I have specific time frames that I combine, but in the spirit of your learning journey I suggest identifying a time frame for the stochastic, and then work higher by a factor of 4-6 for the higher time frame, and lower by a factor of 4-6 for the lower time frame. For instance, if stochastic is in a 15 minute chart, use a 60 min to daily time frame for HTF, and 5-3 min for the lower time frame. Good luck in your studies. More on reddit.com