3 Types of Oil Trading Stochastic Indicators

Fast, Slow & Full Stochastic

There are three types of Oil Stochastic Oscillator Indicators: fast, slow & full stochastic oscillator indicator.

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

Stochastic oscillator oil indicator works based on the principle that:

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

Stochastic Oscillator oil indicator shows the strength of the Oil trends, & identifies times when a oil is oversold or overbought.

Fast Stochastic Oscillator Oil Indicator

Fast Stochastic Oscillator Oil Trading Indicator - fast stochastic oscillator oil indicator plots two lines, one solid and one dotted on the indicator section. These 2 lines are called the %K line & %D line. In this editions the %K & %D lines are calculated differently from the other versions, so as to add extra smoothing.

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

Slow Stochastic Oscillator Oil Indicator

Slow Stochastic Oscillator Crude Oil Indicator – slow stochastic oscillator oil indicator smoothes out the crude crude oil trading price data used for the original calculation and it is used by many Oil traders. This slow stochastic oil indicator version is less prone to whipsaws compared to the fast stochastic version.

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

Full Stochastic Oscillator Oil Indicator

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

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

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