The TKD indicator version 1 is applying to Trading Station II.
This Indicator is the moderate predictor which is Adapted Stochastic KD with Trailing Signal. It represents that predict of coincident timing.
The TKD is one of the predictors developed by Richard Tao.
The first parameter is "N: Periods for %K " which defines original Stochastic periods.
The second parameter is "M: Periods for Smooth" which defines ma periods.
The third parameter is "D: Distance percentage " which defines gauging level of 25/75 oversold/bought in percentage. Example: Setting 120 is changing level to 20/80.
The fourth parameter is "C: Coefficient percentage " which defines the multiplier of change coefficient in percentage. It could be fine-tuned to control the sensitivity.
Personal advice is that N better not to small and the applying timeframe D1 may use:20,5,100,100; H4:30,5,100,100; H1:50,7,100,100.
The TKD applying rules:
When T crosses up S, signal to buy.
When T crosses down S, signal to sell.
The excellence trader needs to have the ability to forecast trend. To enlarge profit, a trader had better to take position before market move rather than just following.
The general indicator is hard to catch the starting and fading away of the trend in performance. That’s the reason why I built a serial of simple and effective predictors for private use. To use those predictors, a trader needs to a)find the average time span, b)trace it, c)believe it. Hope this would help.