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SmartMind1
Stochastic is a momentum indicator in trading, used to determine whether a price is overbought or oversold. It comes in two main variants:
1. Fast Stochastic
It consists of two lines:
%K line: Shows where the closing price is relative to the trading range of the recent periods.
%D line: A moving average of the %K line (typically 3 periods).
Characteristics:
Very responsive to price changes.
Generates numerous trading signals, but also more false signals.
2. Slow Stochastic
Also consists of two lines:
Slow %K line: Corresponds to the %D line of the Fast Stochastic.
Slow %D line: A moving average of the slow %K line (usually 3 periods).
Characteristics:
Produces fewer signals, but more precise and reliable.
Reduces false signals, making it preferable for identifying overbought or oversold conditions.
Practical Usage:
Values above 80 indicate overbought conditions (prices may soon fall).
Values below 20 indicate oversold conditions (prices may soon rise).
Traders generally prefer the Slow Stochastic for its greater reliability.
1. Fast Stochastic
It consists of two lines:
%K line: Shows where the closing price is relative to the trading range of the recent periods.
%D line: A moving average of the %K line (typically 3 periods).
Characteristics:
Very responsive to price changes.
Generates numerous trading signals, but also more false signals.
2. Slow Stochastic
Also consists of two lines:
Slow %K line: Corresponds to the %D line of the Fast Stochastic.
Slow %D line: A moving average of the slow %K line (usually 3 periods).
Characteristics:
Produces fewer signals, but more precise and reliable.
Reduces false signals, making it preferable for identifying overbought or oversold conditions.
Practical Usage:
Values above 80 indicate overbought conditions (prices may soon fall).
Values below 20 indicate oversold conditions (prices may soon rise).
Traders generally prefer the Slow Stochastic for its greater reliability.
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Pernyataan Penyangkalan
Informasi dan publikasi tidak dimaksudkan untuk menjadi, dan bukan merupakan saran keuangan, investasi, perdagangan, atau rekomendasi lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Persyaratan Penggunaan.
Skrip terproteksi
Skrip ini diterbitkan sebagai sumber tertutup. Namun, anda dapat menggunakannya secara bebas dan tanpa batasan apa pun – pelajari lebih lanjut di sini.
Pernyataan Penyangkalan
Informasi dan publikasi tidak dimaksudkan untuk menjadi, dan bukan merupakan saran keuangan, investasi, perdagangan, atau rekomendasi lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Persyaratan Penggunaan.