So for some strange reason ( blame lockdown ), I found myself wondering about the origin of the word stochastic, so I fired up Google and underneath what I was looking for I got the following.
So, third in line after me looking up the origin of the word stochastic appears the age-old chestnut about which indicator is better. Now I know that there are groups scattered around the world who sit around arguing about such stuff as if it were a matter of life and death and they will no doubt lurch towards some form of intellectual jihad based upon their agreement or disagreement with the answer given above. But for it to be the third most popular response on a Google search for a related word is something entirely different.
If there were ever a test to show future trading success it would simply be; have you ever Googled which is better stochastic RSI or stochastic? If you have probably best that you quit now.
The slope of a single twenty one period moving average is enough to determine the shorter-term trend. A one hundred and fifty period moving average is enough to determine the longer-term trend. For trend trading I don’t find oscillator indicators such as stochastic to be particularly useful. The more experienced a share trader or investor becomes, the less indicators are placed on a chart.