Stochastic Fast


Function Name: stoc_fa

Tags: None

Category: Momentum

The Stochastic Fast indicator is an oscillator that works similarly to the Relative Strength Index. It plots between 0 and 100; however, its overbought/oversold boundaries are wider which tend to make this oscillator more volatile.

The Stochastic Fast indicator calculates the location of a current price in relation to its range over a period of bars. The default settings are to use the most recent 14 bars (k_period parameter), the High and Low of that period to establish a range and the Close as the current price . This calculation is then indexed and plotted as %KF. A smoothed average of %KF, known as %DF, is also plotted. %KF and %DF plot as oscillators with values from 0 to 100. The direction of the Stochastic should confirm price movement. For example, a rising Stochastic confirms rising prices.

Stochastic can also help identify turning points when there are non-confirmations or divergences. For example, a new high in price without a new high in Stochastic may indicate a false breakout. Stochastic is also used to identify overbought and oversold conditions when the Stochastic reaches extreme highs or lows. Additionally, %KF crossing above the smoother %DF can be a buy signal and vice versa.







Default Value: 14  |  Minimum: 2  |  Maximum: 9999


Type: Numeric



Default Value: 3  |  Minimum: 2  |  Maximum: 9999


Type: Numeric



Default Value: 80  |  Minimum: 0  |  Maximum: 100


Type: Numeric



Default Value: 20  |  Minimum: 0  |  Maximum: 100


Type: Numeric