Something Interesting in Financial Video July 2013
newdigital, 2013.07.10 08:35
24. The Difference Between the Fast, Slow and Full Stochastic
Answer to a question on what is the difference between the fast stochastic, slow stochastic and full stochastic
See the chart below for an example of this :
For Stochastics to close below 80 in a downtrend or above 20 in an
uptrend is a much stronger signal than if Stochastics simply goes above
or below those levels during the course of the time that the candle is
For example, let's say that a trader is using a 1 hour chart. When that 1
hour candle closes at the end of the hour, the trader can check
Stochastics to see if the two moving averages were above 20 or below 80
after the close occurred. That will confirm that the indicator did
indeed close above or below the requisite level.
By slowing the movement of the indicator down, we will see fewer signals
to buy or sell on the chart, but they should be more reliable signals.
By using a larger value in calculating the raw value of Stochastics, we
slow the indicator down even more. This is why I recommend to traders
using FX charts to use the Slow Stochastics with values of 15,5,5. This
combination offers fairly reliable signals that can offer solid entries
into trading opportunities. The chart below shows the difference between
Fast Stochastics with values of 5,5 compared to Slow Stochastics with
values of 15,5,5.
You can see how much easier it is to identify the signals using the Slow
Stochastics. Being able to use the technical tool effectively is most
of the battle. By keeping things simple and consistent, we should start
to see consistent results in our trading.
As with all indicators, entering a trade only when the indicator
generates an entry that is in the direction of the trend can result in a
higher probability of success.
i have tough question about the %k or %d value is not incorrect or disaccord with picture when i use stochastic indicator in my ea. i just use it as below,
//--- Get handle for KD indicator
//--- Get the handle for Moving Average indicator
//--- What if handle returns Invalid Handle
Alert("Error Creating Handles for indicators - error: ",GetLastError(),"!!");
//--- Do we have enough bars to work with
if(Bars(_Symbol,_Period)<60) // if total bars is less than 60 bars
Alert("We have less than 60 bars, EA will now exit!!");
// the KD Kvalues array
// the KD Dvalues array
if(CopyBuffer(KDHandle,0,0,2,K)<0 || CopyBuffer(KDHandle,1,0,2,D)<0)
Alert("Error copying Stochastic KD indicator Buffers - error:",GetLastError(),"!!");
bool Buy_Condition_1 = (K>=D && K<=D); // k>=D and K1<=D1
bool Buy_Condition_2 = (K<=20 && D<=20); // k1<=20 and d<=20
like above, sometimes it works well but sometime it is bad when they should be sent buy or sell signal.
Can you help me? How should i do? Thanks for your help in advance!
K or D may be changed when a new tick, but we bars of 1 minute, generate the signature, ticks, minute, may cause some deviation?
Are two ticks may be the time between one minute is too small, so we can not just capture the moment of the cross to K / D
How are you K and D arrays declared ? From the code I see K and D are the values of last closed candles and K and D the values of current (open) candle. You probably have to use ArraySetAsSeries() to inverse the index.
in this picture, two arrows should produce two signals but my ea can't send, why?