Stochastic-Fast

If you have never heard of the stochastic indicator, I would first recommend reading about how the stochastic itself works. For those who are familiar, stochastic fast is more sensitive to the market, which means there are going to be more changes and movements in indicator.

Updated over a year ago
View currently updated edicational stories
Filter Stochastic Fast
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.

Reviewed by Rifka Kats

Momentum is important to understand because it can help traders and investors alike determine where the market might be heading. Stochastic is measured from 0 to 100, and the number is indicated in the form of a percentage, and there are two lines. Typically people use this as a trend change when the lines cross, but as with all indicators they are not one hundred percent accurate.

By itself this may be a little difficult, so maybe you should look at adding some other tools or data plots such as Bollinger Bands or standard deviation, giving you more information on when a trend may begin to change. Stochastic also works in slow meaning it is less sensitive to the movements of the market.

Be sure to test this on a demo account first and understand the data that is used. It uses price movement to generate the indicator and you also need to take a look at fundamental data as this omits those aspects. Of course the market moves to fundamental data but it is only indicated in price movement which is not always correlated.

Stochastic is one of the more widely used momentum indicators so it will be beneficial to understand how it works, even if you may not use it. The Internet has a wonderful amount of material on this and if you still have questions, join a trading group and direct your questions there as they can be very helpful

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com

Did you try this?

Run Portfolio Manager Now

   

Portfolio Manager

State of the art Portfolio Manager to monitor and improve performance of your invested capital
All  Next Launch Module
Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any private could be tightly coupled with the direction of predictive economic indicators such as signals in estimate.
You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

Other Consideration for investing

Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios