Fast Stockastics
What is it? The theory behind stockastics is that as an upward trend begins to tire, closing prices will fall towards the bottom of the recent range of intra day prices whereas they will have been towards the top of the range when the trend was in full flow. Stockastics is used to indicate an overbought/oversold market. Fast Stochastics consists of two lines, %K and %D The %K line measures, as a percentage, where the current close is, in relation to the lowest low over the observation period (in this case 14 days). This is shown on a scale of 0 to 100, where 0 is the observation period low, and 100 is the observation period high. The %D line is a Simple Moving Average of the %K.Trading signals are generated by the crossover of these two lines.Added By: Jessica
The Fast Stockastics definition has been viewed 778 Time(s)!
Send To Friends!
If you'd like to send the Fast Stockastics definition to yourself or to your friends/colleagues, just enter the e-mail addresses in the boxes below -We hope you now understand the meaning of Fast Stockastics. If you need any more information on this term, please don't hesitate to contact us.