Pay close attention to the SHORT TERM Stochastic for scalping. Put the SHORT-TERM LINE in a darker color with a dashed line … and put the MEDIUM Stochastic in a solid brighter color. (ie: Short-Term @ purple – dashed) … and MEDIUM @ Gold – a solid line). The LONG-TERM line is good with any desirable color, but you can color the over-bought and over-sold divisions in GREEN and RED.

The SHORT-TERM line is too busy to be placed prominently. You can monitor it’s movements without overload when it’s placed in a darker color than the MEDIUM line.

The SHORT-TERM Stochastic will tell you WHEN the current move will end – or how fast it will rise and fall. This is PERFECT for scalping. You can gauge the strength and length of the move by how fast it hits and progresses towards the upper and lower limits.

Pay attention to the MEDIUM Stochastic for the general move in the current trend.

The ideal scenario is when the all three of the Stochastic lines are rising or falling together. But a safety zone is often found when the SHORT-TERM and the MEDIUM-TERM lines are rising or falling together.

Monitor the movement of the LONG-TERM line in conjunction with the SHORT-TERM and MEDIUM-TERM lines. If the LONG-TERM line is DOWN, but the SHORT-TERM and MEDIUM-TERM lines are rising or falling … the move could be short-lived, but a valid scalp.

At least TWO lines (SHORT-TERM and MEDIUM-TERM) should be moving together to assess a move up or down.

THIS IS A GREAT INDICATOR, ERIC.

THANK YOU VERY MUCH !!!!!

For currencies, however, the settings need to be fine-tuned a bit — and this really needs to be used with other indicators — the RSI in particular. I do like this with an RSI/Exponential and the MACD HLC that ThinkScripter wrote and has here somewhere — the 3 of those together, when properly fine-tuned, seem to really work well together with some of the more active currency pairs.

Currencies, of course, have a much different feel than futures and equities — that’s no secret — and they will also occasionally make sudden price movements that are almost impossible to predict. A single off-hand comment from a political figure can move a currency by an extreme degree — I don’t think any indicator can fully capture that kind of thing.

Still, it does appear that this has some real value with the more actively-traded currency crossings.

Keep up the great work!