3 Types of Energies Trading Stochastic Indicators

Fast, Slow and Full Stochastic

There are three types of Energies Trading Stochastic Oscillator Indicators: fast, slow and full stochastic oscillator indicator.

All the 3 versions of this stochastic oscillator energies indicator look at a given period for example the 10-day period, and measure how today's energies price close compares to the high and low range of the time period that is being considered in the energies calculation of stochastic oscillator.

Stochastic oscillator energies technical indicator works based on the principle that:

• During an upward energies trend, energies price action tends to close at the high of the candle.
• During a downward energies trend, energies price action tends to close at the low of the candle.

Stochastic Oscillator indicator shows the strength of the Energies trends, and identifies times when a energies is oversold or overbought.

Fast Stochastic Oscillator Technical Indicator

Fast Stochastic Oscillator Technical Indicator - fast stochastic oscillator energies indicator plots two lines, one solid and one dotted on the indicator section. These two lines are called the %K line and %D line. In this versions the %K and %D lines are calculated differently from the other versions, so as to add extra smoothing.

One disadvantage of using this fast stochastic energies indicator version is that the %K and %D lines are too sensitive and they often give energies whipsaws when they get to the overbought and oversold levels. The fast stochastic lines are prone to fake energies signals/whipsaws.

Slow Stochastic Oscillator Technical Indicator

Slow Stochastic Oscillator Energies Technical Indicator - slow stochastic oscillator energies indicator smoothes out the energies price data used for the original calculation and it is used by many Energies traders. This slow stochastic energies indicator version is less prone to whipsaws compared to the fast stochastic version.

For the slow stochastic energies indicator. A 3 period moving average is used to smooth out the stochastic lines. The moving average is not that of the energies price action but of the stochastic oscillator indicator lines data.

Full Stochastic Oscillator Technical Indicator

Full Stochastic Oscillator Technical Indicator - this stochastic oscillator does not use a fixed moving average period, like the slow energies stochastic oscillator version above. Energies traders don't want to use a fixed setting to calculate the stochastic energies indicator.

Because of this reason the full stochastic was developed by traders and it is more flexible than the earlier two energies stochastics oscillator versions.

Full stochastic oscillator energies indicator version allows energies traders to choose the period they want for the fast and slow energies stochastic indicator line.