Stochastic oscillator settings for scalping on 5 minute charts

For scalping on 5-minute charts, optimizing the Stochastic Oscillator settings is crucial to capture short-term price movements effectively. Here's a suggested setup: 1. **Short %K Period**: Set the %K period to 9 or 10. This short period makes the Stochastic Oscillator highly responsive to rapid price changes, ideal for scalping on short timeframes. 2. **Short %D Period**: Keep the %D period at 3. This smooths out the %K readings, providing a clearer signal and avoiding overreacting to short-term price noise. 3. **Overbought/Oversold Levels**: Adjust the overbought level to 85 and the oversold level to 15. This setting helps filter out false signals and ensures that you only consider significant price movements. 4. **Timeframe Adjustments**: For 1-minute charts, settings like 9,3,3 are commonly used, while 14,3,3 works well for 5-minute charts. Shorter timeframes tend to benefit from %K periods between 5 and 14, offering a good mix of quick signals and noise reduction. By adjusting these settings, you can optimize the Stochastic Oscillator for scalping on a 5-minute chart. Remember to backtest any indicator settings on your own data to ensure they work well for your specific trading style and market conditions.