Stochastic Oscillator (Fast D)
Fast Stochastic %D is the moving average of the %K line. It smooths out the fast movements of %K, making signals easier to read. Many traders focus on crossovers between %K and %D to spot entry or exit points.
A buy signal can appear when %K crosses above %D from oversold levels, while a sell signal may come when %K crosses below %D from overbought levels.
For instance, if a stock’s %K rises above %D while both are near 15, traders may see it as an oversold bounce opportunity.
| Parameter | Description | Default Value |
|---|---|---|
| Window | Number of periods for indicator | 14 |
| Smoothing Period | Number of periods for smoothing | 3 |