Weekly Stochastic Divergence

Hi All,

After losing the profits of my 2 weeks in 2 days, I have consulted with Courtney who shared with me about Weekly Stochastic Divergence.

He said that generally he uses Stochastic as a tool to determine the size of the contract. If there is a Weekly Stochastic Divergence, there is a major trend change. Hence, the opposite direction trades have more contracts e.g. based on 2% where as the same direction trades will have lesser contracts e.g. based on 1/4%.

In general, depending on the Seasonality, other than that, Risk Management should be at 1% :) BUT it's still quite hard for me as a newbie to identify the Weekly Stochastic Divergence... T.T

Your Friend,
Max Tay