We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Mixed
Gold
Bullish
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Mixed
More View more
Real Time News
  • US Treasury Yields Update: 2-Year: 1.621% 3-Year: 1.604% 5-Year: 1.614% 7-Year: 1.702% 10-Year: 1.791% 30-Year: 2.271% $TNX
  • Crude Oil Prices Jump on OPEC Supply Cut Hopes This December - via @DailyFX https://www.dailyfx.com/forex/market_alert/2019/10/22/crude-oil-prices-jump-on-OPEC-supply-cut-hopes-this-december.html $CL_F $USO #OOTT
  • This downdraft by $USDMXN is getting stretched. Nearing significant support. Balance of risk trends and trade wars skews for Dollar, perhaps not Fed anticipation though https://t.co/3qUW15hY8x
  • Will gold benefit from turmoil in the markets? And what impacts are geopolitical risks having on #oil? Find out from @Monte_IG of @IGMENA only on Trading Global Markets Decoded #podcast. Tune in today! https://t.co/Mv1GatGlLb https://t.co/RHvcnlcsXz
  • UK PM Johnson ready to accept a 10 day Brexit delay - Financial Times
  • Secretary Mnuchin says the Financial Stability Oversight Council has created a subcommittee to address cryptocurrencies $BTC #Libra
  • $CL_F $USO #WTI https://t.co/z9ELWaNDqo
  • AUD/USD, NZD/USD Price Forecast: Bullish Signals and Critical Levels More details in the link below: https://www.dailyfx.com/forex/technical/home/analysis/aud-usd/2019/10/22/AUDUSD-NZDUSD-Price-Forecast-Bullish-Signals-and-Critical-Levels-MK.html?CHID=9&QPID=917714 https://t.co/gyZPcuj678
  • OPEC reportedly considering deeper oil cuts at December meeting due to weak demand growth outlook in 2020 #OOTT
  • OPEC sources states that OPEC and allies will consider deeper oil cuts at December meeting due to weak demand growth outlook in 2020 #OOTT
Fast Stochastics vs Slow Stochastics

Fast Stochastics vs Slow Stochastics

2011-07-29 18:23:00
Richard Krivo, Trading Instructor
Share:

One of the most widely used indicators is Stochastics. A question that is oftentimes asked in our live sessions is what is the difference between Slow and Fast Stochastics.

Below is a Daily chart of the USDCHF with both a Slow and Fast Stochastic indicator on it…Slow Stochastics above and Fast Stochastics below.

Fast Stochastics vs Slow Stochastics

In principle, the trading rules are the same...a cross above 80 with a close below 80 indicates that momentum on the pair is bearish...to the downside. Conversely, a cross below 20 with a close above 20 indicates bullish momentum.We would advocate the use of the Slow Stochastics from the standpoint that it is more "readable" since it does not react as dramatically to each price action movement, be it major or minor, that the pair may have. As can be seen on the chart below, Fast Stochastics is much more sensitive to price action and, as such, is often used by shorter term traders.Keep in mind that oscillators such as Stochastics will not “predict” trends. Rather they indicate momentum based on price action. A trader will identify the trend on the Daily chart and then use an oscillator like Stochastics to time their entry in the direction of the trend on the Daily chart when momentum is shown as being in that direction.So if the daily trend on a pair is bearish as it is on this USDCHF pair, a trader using Stochastics to enter the trade, would enter a short position when Stochastics had been above 80 and then closed below 80.

Next: What you need to know about overbought and oversold (47 of 63)

Previous: How to Trade with Stochastic Oscillator

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.