good monday?, page-53

The problem with monthly stochastics is they can take years to work through from overbought to oversold.

Take the XJO....Monthly stochastic hit overbought in October 2003.

Would you have sold on the strength of that? If you did, you would have missed 4 YEARS of that huge rally, during which the stochastic stayed pretty much overbought until the GFC.

Prior to the 2003-2007 rally, the monthly stochastic never bottomed --not even once-- between 1995 and 2003.

So I find them pretty meaningless to my short-term trading.

Even weeklies can stay overold/overbought for months.