The fast and slow

[rabbi504564]

The stochastic indicator comes in two avors: fast and slow. The formula
for the fast stochastic was already presented. The slow stochastic, as the
name implies, slows the stochastic indicator by replacing %K with its
three-period simple moving average %D. The formula then calculates a
new %D of this slower %K value. The idea is to smooth out even further
the jumpiness of raw price data in order to ascertain the underlying trend.
Though relatively simple in concept, stochastics are the cornerstone for
many technicians’ range-bound setups because of their ability to gauge rela-
tively oversold or overbought levels. The standard rule with stochastics is
that a reading of 80 indicates that the tradable is overbought and a reading of
20 suggests an oversold price state. However, just because the currency pair
is ashing a stochastic value of 80 does not mean that it cannot go materially
higher in price, and similarly it can also decrease much further even if it
prints a value below 20. In fact, during very strong uptrends stochastics may
indicate a reading of 80 for many days, just as in a downtrend stochastic
readings may dive down into the teens or even single digits. Dr. Lane was
very clear that a stochastic of 80 does not mean that the trader must immedi-
ately short, nor does a reading of 20 mean that bids must be placed. Rather,
the proper way to use stochastics is to observe the indicator once it has en-
tered the overbought or oversold zone. Only when the indicator slips back
below 80 or moves up above 20 does the trader follow the signal. Stochastics
essentially measure momentum, and a break of the 80 line or a rally through
the 20 line would indicate that buying or selling momentum has ceased and
the trader is offered a high-probability directional trade

[shanta93]

I think that traders in forex market should very slowly and they should not become very busy to make money from this business. If the traders trade in this market then they can get loss and loss from this market is very high that is almost impossible to recover where they can become helpless.

[tahsintr]

I like to trade in forex market slowly. I think that if the traders want to make money from this business very fast there they can make some mistakes that can become a cause of their loss from this market. The slow trading strategy is better for the new traders.

[nahidtw]

I think that trading very fast is a very risky work for the forex traders where they cab get loss from this business. They should trade slowly in this market and they should invest less in this market to run a long way in this trading platform.