Fast Stochastic is a technical indicator that measures the moments of the prices in the market. Technical analysts use this to identify overbought and oversold situations through their price moments. By using KEEV, you can analyse the Fast Stochastic indicator without any hassles.  

In This Article

What is the Fast Stochastic Indicator? 

How To Analyse a Chart Using the Fast Stochastic Indicator?

How To Use the Fast Stochastic Indicator on KEEV?

Category – Momentum

Type – Leading/Lagging

What is the Fast Stochastic Indicator?

Fast Stochastic is a momentum technical indicator that measures the price movements and reversal in trends of the market. It is also used to identify the overbought and oversold situations in the market. 

This indicator was developed by George Lane, a stock trader, and a technical analyst, and represented as %K.

Fast Stochastic Indicator oscillates between 0 to 100. To analyse this indicator, you must understand two important parameters: the lookback period and the smoothing parameter.

The lookback period refers to the period over which the oscillator is calculated. An oscillator's moving average is calculated over the smoothing parameter's number of periods.

Fast Stochastic %K = (Close - Lowest Low for Period) / (Highest High for Period - Lowest Low for Period) * 100

How to analyse a chart using the Fast Stochastic Indicator? 

You can analyse the Fast Stochastic Indicator by using the chart below. 

As you can see in the above chart, the Fast Stochastic Indicator is oscillating between 0 and 100. 

You can analyse the overbought and oversold signals using the chart. 

When the %K is above 80, it is considered an overbought situation. Conversely, when the %K goes below 20, it is considered an oversold signal. There are also levels of 75 and 25, which are commonly used.

The indicator could indicate a Buy signal when it crosses below the oversold line (20) and a sell signal when it crosses above the overbought line (80).