Skip to main content

Stochastichs: Slow, Fast, Full?

What kind of stochastics should be used in the chart?

Stochastics is an oscillator that shows overbought and oversold conditions.

There are three types of settings: fast, slow and full. 

Fast Stochastics

%K is set to 3. This is the fast moving line in the indicator.

Slow Stochastics

%D is set to 3. This is the slow moving line in the indicator.

Full Stochastics

The full stochastics includes both %K settings, %D settings as well as the day period that the indicator takes into consideration (5-day, 10-day...)

The recommended full stochastics setting for swing trading is 12,3,3 (Period= 12, %K= 3, %D= 3)

The recommended full stochastics setting for day trading is 5,2,2 (Period= 5, %K= 2, %D= 2)

Please bear in mind that stochastics oscillator is a lagging indicator.

In addiiton stochastics only takes into consideration price and time. It does not include volume into its formula. Therefore it is an limited indicator.

Good trading!

Trading Risk Disclaimer

All the information shared is provided for educational purposes only. Any trades placed upon reliance of SharperTrades, LLC are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, cryptos, commodities, options, forex and other trading securities, there is also substantial risk of loss. All trading operations involve high risks of losing your entire investment. You must therefore decide your own suitability to trade. Trading results can never be guaranteed. SharperTrades, LLC is not registered as an investment adviser with any federal or state regulatory agency. This is not an offer to buy or sell stocks, cryptos, forex, futures, options, commodity interests or any other trading securities.

Popular posts from this blog

Three AI Stocks Poised for Consistent Growth: Alphabet, Taiwan Semiconductor, and Palantir

Bitcoin Faces Some Bearish Pressure Amid ETF Outflows

Volkswagen's Game-Changing Investment in Rivian