News & Analysis at your fingertips.

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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
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
Oil - US Crude
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
Wall Street
Bearish
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
Gold
Bullish
GBP/USD
Bearish
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
USD/JPY
Mixed
More View more
Real Time News
  • $AUDJPY is down a ninth consecutive session, but the pace isn't exactly the tempo that suggests a loaded spring. Seems some of the risk-sensitivity is coming back to these wayward carry pairs https://t.co/1TKXXBricC
  • US Four-Week Bills Draw 0.075% Primary Dealers Awarded: 56.0% Indirect Bidders Accepted: 37.5% Direct Bidders Accepted: 6.5% B/C Ratio: 3.88
  • US Eight-Week Bills Draw 0.090% Primary Dealers Awarded: 56.9% Indirect Bidders Accepted: 36.9% Direct Bidders Accepted: 6.2% B/C Ratio: 3.60
  • S&P 500 Technical Outlook: Bears Challenge First Major Support - $SPX Levels- https://t.co/LWhK6JBWBZ https://t.co/VQs1vOj0h2
  • Secretary Mnuchin says he would support additional fiscal measures $SPX
  • Hey traders! Get your Thursday market update from @DailyFX Chief Strategist @JohnKicklighter 👇 https://t.co/iRF2tSbRuh
  • Fed Chair Powell says the municipal finance market is working pretty well
  • GBP/USD will likely extend its recent slide caused principally by a stronger US Dollar. Get your $GBPUSD market update from @MartinSEssex here:https://t.co/izio6AVcFX https://t.co/HCGK3NEW8N
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.02% 🇯🇵JPY: -0.07% 🇨🇦CAD: -0.07% 🇨🇭CHF: -0.32% 🇳🇿NZD: -0.38% 🇦🇺AUD: -0.67% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/pv6tWdcxqU
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: US 500: -0.34% Wall Street: -0.40% Germany 30: -0.85% France 40: -1.31% FTSE 100: -1.70% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/m31LiWOqsh
Slow Stochastics versus Fast Stochastics

Slow Stochastics versus Fast Stochastics

2011-05-10 20:42:00
Richard Krivo, Trading Instructor
Share:

Student's Question:What are the main differences between Fast Stochastics and Slow Stochastics?Instructor's Response:Below is a Daily chart on the GBPCHF currency pair with both a Slow and Fast Stochastic indicator on it…Fast Stochastics is below and Slow Stochastics is above.

Slow_Stochastics_versus_Fast_Stochastics_body_chart_5_10_11.png, Slow Stochastics versus Fast 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.

Crosses that take place between those levels are valid trading signals but have a lower reliability than do those occurring above 80 or below 20.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 every movement of price, no matter how large or small, 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, a trader using Stochastics to enter the trade, would enter a short position when Stochastics had been above 80 and then closed below 80.

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

DISCLOSURES