Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Unless a trader tells you exactly why he uses the parameters, and exactly how he trades with them, including time frames and money management, then those numbers will generally be meaningless to another trader. I can tell you that I successfully use 8,9,13, but I can also almost guarantee you that these numbers will send most to the poor house, because I've tuned these parameters to trade in a specific way. If one trader uses a set of parameters to trade reversals for 3 ticks targets, it will probably be horrible if another trader trades them for 50 ticks breakouts.
So, other traders parameters are not going to help. What will help is understanding what the indicator does, and how each parameter affects the behavior of the indicator. What I did was, I spent hours playing with the parameters, changing them each, one at a time, and seeing what the resulting behavior was, i.e how fast did the transition from overbought to oversold change, how long did the lines spend in overbought/oversold regions, how smooth was each line, how sharp where the reversals, how many divergent signals were produced, etc. Then you will be able to adjust the parameters to fit your trading style.
You are 100% correct, I like the settings of 8, 17, 9 for a 5 minute chart and a daily chart. I usually look for divergences with the indicator as it can help spot market turns.