Comparison of Slow, Normal and Fast Stochastics

The speaker discusses the difference between the 3 types of stochastics; slow, full, and fast.  In the fast stochastics, the %K line is not smoothed so there is no moving average.  Conversely, in the slow stochastics, the %K line is smoothed using a 3 period moving average of the %K line values derived in the fast stochastics.  While the fast stochastics tends to provide an earlier indication of a trend change, it is subject to whipsawing the trader with false moves.  This is where the slow stochastics add some value; even though they do not get a trader in at the exact bottom, they can provide more reliable signals.

The full stochastics allows you to smooth both the %K and %D lines; thereby allowing you to slow each line down. 


Tim Ord
Ord Oracle

Tim Ord is a technical analyst and expert in the theories of chart analysis using price, volume, and a host of proprietary indicators as a guide...

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