Setting the proper period on an indicator
Setting the proper period on an indicator
Many technical analysis indicators are standardly set on 14 periods, but I was wondering if adjusting the period could make a significant difference for a correct trade.
How much does a proper period matter for you, and how do you properly set it?
P.S.: which could be a proper period for a day trading strategy?
P.S. n.2: would be great if somebody could share his strategy, just to see a practical example.
I’ve considered this before and then just thought it wasn’t very useful because you can just change the price interval of the chart you’re using instead.
Back to the question, I’d lean to getting as many points as possible (especially on shorter timeframes) – but this might depend on eyeing the chart for each individual currency and seeing how long it takes to break down/up normally and adjusting your indicators accordingly (perhaps trying full time, half time and 2/3rds). Once you’ve got an idea, you could also go back a few days/months to test it out and see how well it looks.