Back Description and methodology Stochastic is an oscillator type indicator.
An American analyst, George C. Lane has developed it in the s. The indicator compares the current closing price with the trading price range of the previous interval.
The indicator helps to find conflicting movements between the stochastic line and the sztochasztikus kereskedés of the instrument. This can help to assess selling or buying decisions.
It is a percentage value, so the oscillator is going to move between 0 and Usually analysts choose 14 days for the analysis. The analysed 14 periods can be daily, weekly, or monthly data.
This element is called Fast Stochastic graph. Most brokers use the Slow Stochastic indicator, because it signals market processes more reliably. Fast Stochastic reacts to price changes more quickly, giving more false signals than the Slow indicator.
In the example below, Fast Stochastic Oscillator is the top chart. Slow Stochastic Oscillator is visible at the bottom.
Full Stochastic Oscillator is more flexible and developed than the Slow and Fast types.