alf44
2,025 posts
msg #46751
- Ignore alf44
modified |
9/5/2006 12:45:51 PM
kjones2719,
You said:
"People say that stochastics should be below 25 to indicate overbought and above 75 to indicate oversold. Are they referring to
A...slow stochastics (fast %k)
B...Slow stochastics (slow %d)
C...fast stochatics (fast %k)
D...fast stochastics (slow %d) "
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First of all...you have it backwards !
"Overbought" will always be the HIGHER number (ie. 75) ! Actually, it's typically 80 !!!
"Oversold" will always be the LOWER number (ie. 25) ! Actually, it's typically 20 !!!
Secondly...with a Stochastic it is the Fast %K line that is the "main" line and is usually the one from which the O/B or O/S reading is made...although, BOTH should be looked at. The Slow %D line is just an average of the Fast %K line. fwiw
This applies to either a Fast Stochastic or a Slow Stochastic !
Regards,
alf44
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