Stochastic Oscillator (Slow D)
Slow Stochastic %D is the moving average of the Slow %K line. It is the smoothest of the stochastic signals and is often used as the primary decision-making line in trading systems.
Traders watch for crossovers between Slow %K and Slow %D. A buy signal occurs when Slow %K crosses above Slow %D from oversold levels, while a sell signal appears when Slow %K crosses below Slow %D from overbought levels. Because both lines are smoothed, these signals are considered more reliable but slightly delayed.
For instance, if a stock’s Slow %K climbs above Slow %D while both are near 18, traders may see it as confirmation that momentum is shifting upward from oversold conditions.
Parameter | Description | Default Value |
---|---|---|
Window | Number of periods for calculation | 14 |
Smoothing Period | Number of periods for smoothing | 3 |