How do you apply stochastic oscillator multiple time frames to different asset classes and time frames?

2 How to set up the stochastic oscillator MTF?

To set up the stochastic oscillator MTF, you need to choose three time frames that suit your trading style and asset class. For example, if you are trading forex, you can use the daily, 4-hour, and 1-hour charts. If you are trading stocks, you can use the weekly, daily, and hourly charts. You also need to decide on the settings for the stochastic oscillator, such as the period, the smoothing factor, and the overbought and oversold levels. A common setting is 14, 3, 3, with 80 and 20 as the overbought and oversold levels.

3 How to interpret the stochastic oscillator MTF?

To interpret the stochastic oscillator MTF, you need to look for alignment and divergence among the three time frames. Alignment means that the stochastic oscillator is moving in the same direction and showing the same signal on all three time frames. Divergence means that the stochastic oscillator is moving in opposite directions or showing different signals on different time frames. Alignment indicates a strong and consistent trend, while divergence indicates a weak or changing trend.

4 How to trade with the stochastic oscillator MTF?

To trade with the stochastic oscillator MTF, you need to follow some basic rules. First, you should trade in the direction of the trend on the longest time frame. For example, if the stochastic oscillator is above 80 on the daily chart, you should look for buy signals on the lower time frames. Second, you should look for confirmation and entry signals on the medium time frame. For example, if the stochastic oscillator is crossing above 20 on the 4-hour chart, you should look for a bullish candlestick pattern or a breakout of resistance. Third, you should look for exit signals on the shortest time frame. For example, if the stochastic oscillator is crossing below 80 on the 1-hour chart, you should look for a bearish candlestick pattern or a breakdown of support.

5 How to adjust the stochastic oscillator MTF for different asset classes?

The stochastic oscillator MTF can be applied to any asset class, such as forex, stocks, commodities, or cryptocurrencies. However, you may need to adjust the time frames and the settings depending on the volatility, liquidity, and characteristics of the asset class. For example, if you are trading a highly volatile and fast-moving asset class, such as cryptocurrencies, you may want to use shorter time frames, such as the 4-hour, 1-hour, and 15-minute charts. You may also want to use lower overbought and oversold levels, such as 70 and 30, to capture more signals. On the other hand, if you are trading a less volatile and slow-moving asset class, such as commodities, you may want to use longer time frames, such as the weekly, daily, and 4-hour charts. You may also want to use higher overbought and oversold levels, such as 90 and 10, to filter out noise.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?