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Slow Stochastics


lehula

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https://www.investopedia.com/ask/answers/05/062405.asp

That's a good resource.

Some traders find that this indicator is too responsive to price changes, which ultimately leads to being taken out of positions prematurely. To solve this problem, the slow stochastic was invented by applying a three-period moving average to the %K of the fast calculation. Taking a three-period moving average of the fast stochastic's %K has proved to be an effective way to increase the quality of transaction signals; it also reduces the number of false crossovers. After the first moving average is applied to the fast stochastic's %K, an additional three-period moving average is then applied - making what is known as the slow stochastic's %D. Close inspection will reveal that the %K of the slow stochastic is the same as the %D (signal line) on the fast stochastic.

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