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Slow Stochastics

The slow stochastic is a smoothed variation of the fast stochastic. The slow stochastic is more commonly used and is often referred to as the stochastic. The slow stochastic renders buy and sell signals the same way fast stochastics do--all rules apply.

Formula:

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F%D = 3 period modified moving average of F%K

S%K = F%D

S%D = 3 period modified moving average of S%K

Where:

F%K = current fast %K

F%D = current fast %D

S%K = current slow %K

S%D = current slow %D

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see, George C. Lane, Lanes Stochastics, in Technical Analysis of Stocks & Commodities, May/June, 1984; see also, Murphy, John J., Technical Analysis of the Futures Markets, A Comprehensive Guide to Trading Methods and Applications, New York: New York Institute of Finance, A Prentice-Hall Company, 1986, p. 309.

See also:

Slow Stochastics Function