{"id":2219,"date":"2013-02-28T15:36:13","date_gmt":"2013-02-28T15:36:13","guid":{"rendered":"http:\/\/blog.thehotpennystocks.com\/?p=2219"},"modified":"2013-04-09T11:36:25","modified_gmt":"2013-04-09T11:36:25","slug":"stochastics","status":"publish","type":"post","link":"\/learn\/stochastics\/","title":{"rendered":"Stochastics"},"content":{"rendered":"

\"stochastics\"<\/p>\n

The technical indicator called Stochastics is used to determine patterns of uptrends and downtrends in a stock\u2019s trading pattern. The oscillation of the Stochastics shows you when a stock is nearing or within an oversold area or nearing or within an overbought area.<\/p>\n

Stochastics come in two main varieties, fast and slow. Both are graphed between 0-100, where over 80 means overbought and under 20 means oversold.<\/p>\n

\"stochastics<\/p>\n

Stochastics Fast<\/h2>\n

The Stochastic Fast is charted using the following two lines.<\/p>\n

Fast %K:<\/b>\u00a0[(Close – Low) \/ (High – Low)] x 100 (shown as black line above)
\nFast %D:<\/b>\u00a0Simple moving average of Fast K (3-day MA) (shown as blue “trigger line” above)<\/p>\n

Stochastics Slow<\/h2>\n

The Stochastic Slow is charted using the following two lines.\u00a0<\/b><\/p>\n

Slow %K:\u00a0Equal to Fast %D (3-day MA of Fast %K) (shown as black line above)
\nSlow %D:<\/b>\u00a0Simple moving average of Slow %K (shown as blue “trigger line” above)<\/p>\n

Which is better? Well, the Stochastics Slow is usually preferred by most traders because is does not show as many false buy and sell signals.<\/p>\n

Stochastic Price Divergences<\/h2>\n

One other aspect of Stochastics that I would like to touch on are Stochastic Price Divergences. This occurs when the Stochastics begins to oscillate within a smaller and smaller range. If the narrowing range is encompassing high numbers around 70 and above then this is a very strong bullish signal. The opposite is also true, if the narrowing range is encompassing low numbers below 30 then this is a very bearish signal.<\/p>\n

Below is an example of a bullish Stochastic Price Divergence.<\/p>\n

\"stochastics<\/p>\n

 <\/p>\n

Technical Indicators : Table of Contents<\/h3>\n
    \n
  1. Introduction<\/a><\/li>\n
  2. Bollinger Bands<\/a><\/li>\n
  3. MACD<\/a><\/li>\n
  4. Stochastics<\/a><\/li>\n
  5. RSI<\/a><\/li>\n
  6. More Indicators…<\/a><\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

    The technical indicator called Stochastics is used to determine patterns of uptrends and downtrends in a stock\u2019s trading pattern. The oscillation of the Stochastics shows you when a stock is nearing or within an oversold area or nearing or within an overbought area. Stochastics come...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,6],"tags":[],"class_list":["post-2219","post","type-post","status-publish","format-standard","hentry","category-learn-to-trade","category-technical-indicators"],"yoast_head":"\nStochastics - The Hot Penny Stocks<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/learn-to-trade.thehotpennystocks.com\/learn\/stochastics\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Stochastics - The Hot Penny Stocks\" \/>\n<meta property=\"og:description\" content=\"The technical indicator called Stochastics is used to determine patterns of uptrends and downtrends in a stock\u2019s trading pattern. The oscillation of the Stochastics shows you when a stock is nearing or within an oversold area or nearing or within an overbought area. Stochastics come...\" \/>\n<meta property=\"og:url\" content=\"\/learn\/stochastics\/\" \/>\n<meta property=\"og:site_name\" content=\"The Hot Penny Stocks\" \/>\n<meta property=\"article:published_time\" content=\"2013-02-28T15:36:13+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2013-04-09T11:36:25+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/www.thehotpennystocks.com\/Learn-To-Trade\/images\/stochastics.gif\" \/>\n<meta name=\"author\" content=\"learnstocks\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"learnstocks\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/learn-to-trade.thehotpennystocks.com\\\/learn\\\/stochastics\\\/#article\",\"isPartOf\":{\"@id\":\"\\\/learn\\\/stochastics\\\/\"},\"author\":{\"name\":\"learnstocks\",\"@id\":\"https:\\\/\\\/learn-to-trade.thehotpennystocks.com\\\/learn\\\/#\\\/schema\\\/person\\\/d9b297ef0bc2139b978604d35d9d0908\"},\"headline\":\"Stochastics\",\"datePublished\":\"2013-02-28T15:36:13+00:00\",\"dateModified\":\"2013-04-09T11:36:25+00:00\",\"mainEntityOfPage\":{\"@id\":\"\\\/learn\\\/stochastics\\\/\"},\"wordCount\":273,\"image\":{\"@id\":\"https:\\\/\\\/learn-to-trade.thehotpennystocks.com\\\/learn\\\/stochastics\\\/#primaryimage\"},\"thumbnailUrl\":\"http:\\\/\\\/www.thehotpennystocks.com\\\/Learn-To-Trade\\\/images\\\/stochastics.gif\",\"articleSection\":[\"Learn To Trade\",\"Technical Indicators\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"\\\/learn\\\/stochastics\\\/\",\"url\":\"https:\\\/\\\/learn-to-trade.thehotpennystocks.com\\\/learn\\\/stochastics\\\/\",\"name\":\"Stochastics - The Hot Penny Stocks\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/learn-to-trade.thehotpennystocks.com\\\/learn\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/learn-to-trade.thehotpennystocks.com\\\/learn\\\/stochastics\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/learn-to-trade.thehotpennystocks.com\\\/learn\\\/stochastics\\\/#primaryimage\"},\"thumbnailUrl\":\"http:\\\/\\\/www.thehotpennystocks.com\\\/Learn-To-Trade\\\/images\\\/stochastics.gif\",\"datePublished\":\"2013-02-28T15:36:13+00:00\",\"dateModified\":\"2013-04-09T11:36:25+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/learn-to-trade.thehotpennystocks.com\\\/learn\\\/#\\\/schema\\\/person\\\/d9b297ef0bc2139b978604d35d9d0908\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/learn-to-trade.thehotpennystocks.com\\\/learn\\\/stochastics\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/learn-to-trade.thehotpennystocks.com\\\/learn\\\/stochastics\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/learn-to-trade.thehotpennystocks.com\\\/learn\\\/stochastics\\\/#primaryimage\",\"url\":\"http:\\\/\\\/www.thehotpennystocks.com\\\/Learn-To-Trade\\\/images\\\/stochastics.gif\",\"contentUrl\":\"http:\\\/\\\/www.thehotpennystocks.com\\\/Learn-To-Trade\\\/images\\\/stochastics.gif\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/learn-to-trade.thehotpennystocks.com\\\/learn\\\/stochastics\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/learn-to-trade.thehotpennystocks.com\\\/learn\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Stochastics\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/learn-to-trade.thehotpennystocks.com\\\/learn\\\/#website\",\"url\":\"https:\\\/\\\/learn-to-trade.thehotpennystocks.com\\\/learn\\\/\",\"name\":\"The Hot Penny Stocks\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/learn-to-trade.thehotpennystocks.com\\\/learn\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/learn-to-trade.thehotpennystocks.com\\\/learn\\\/#\\\/schema\\\/person\\\/d9b297ef0bc2139b978604d35d9d0908\",\"name\":\"learnstocks\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/cd882c4a69a217d385527d4e3bd8c8796a24ba068718df6731a1b88edb3148ef?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/cd882c4a69a217d385527d4e3bd8c8796a24ba068718df6731a1b88edb3148ef?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/cd882c4a69a217d385527d4e3bd8c8796a24ba068718df6731a1b88edb3148ef?s=96&d=mm&r=g\",\"caption\":\"learnstocks\"},\"url\":\"https:\\\/\\\/learn-to-trade.thehotpennystocks.com\\\/learn\\\/author\\\/learnstocks\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Stochastics - The Hot Penny Stocks","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/learn-to-trade.thehotpennystocks.com\/learn\/stochastics\/","og_locale":"en_US","og_type":"article","og_title":"Stochastics - The Hot Penny Stocks","og_description":"The technical indicator called Stochastics is used to determine patterns of uptrends and downtrends in a stock\u2019s trading pattern. The oscillation of the Stochastics shows you when a stock is nearing or within an oversold area or nearing or within an overbought area. Stochastics come...","og_url":"\/learn\/stochastics\/","og_site_name":"The Hot Penny Stocks","article_published_time":"2013-02-28T15:36:13+00:00","article_modified_time":"2013-04-09T11:36:25+00:00","og_image":[{"url":"http:\/\/www.thehotpennystocks.com\/Learn-To-Trade\/images\/stochastics.gif","type":"","width":"","height":""}],"author":"learnstocks","twitter_misc":{"Written by":"learnstocks","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/learn-to-trade.thehotpennystocks.com\/learn\/stochastics\/#article","isPartOf":{"@id":"\/learn\/stochastics\/"},"author":{"name":"learnstocks","@id":"https:\/\/learn-to-trade.thehotpennystocks.com\/learn\/#\/schema\/person\/d9b297ef0bc2139b978604d35d9d0908"},"headline":"Stochastics","datePublished":"2013-02-28T15:36:13+00:00","dateModified":"2013-04-09T11:36:25+00:00","mainEntityOfPage":{"@id":"\/learn\/stochastics\/"},"wordCount":273,"image":{"@id":"https:\/\/learn-to-trade.thehotpennystocks.com\/learn\/stochastics\/#primaryimage"},"thumbnailUrl":"http:\/\/www.thehotpennystocks.com\/Learn-To-Trade\/images\/stochastics.gif","articleSection":["Learn To Trade","Technical Indicators"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"\/learn\/stochastics\/","url":"https:\/\/learn-to-trade.thehotpennystocks.com\/learn\/stochastics\/","name":"Stochastics - The Hot Penny Stocks","isPartOf":{"@id":"https:\/\/learn-to-trade.thehotpennystocks.com\/learn\/#website"},"primaryImageOfPage":{"@id":"https:\/\/learn-to-trade.thehotpennystocks.com\/learn\/stochastics\/#primaryimage"},"image":{"@id":"https:\/\/learn-to-trade.thehotpennystocks.com\/learn\/stochastics\/#primaryimage"},"thumbnailUrl":"http:\/\/www.thehotpennystocks.com\/Learn-To-Trade\/images\/stochastics.gif","datePublished":"2013-02-28T15:36:13+00:00","dateModified":"2013-04-09T11:36:25+00:00","author":{"@id":"https:\/\/learn-to-trade.thehotpennystocks.com\/learn\/#\/schema\/person\/d9b297ef0bc2139b978604d35d9d0908"},"breadcrumb":{"@id":"https:\/\/learn-to-trade.thehotpennystocks.com\/learn\/stochastics\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/learn-to-trade.thehotpennystocks.com\/learn\/stochastics\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/learn-to-trade.thehotpennystocks.com\/learn\/stochastics\/#primaryimage","url":"http:\/\/www.thehotpennystocks.com\/Learn-To-Trade\/images\/stochastics.gif","contentUrl":"http:\/\/www.thehotpennystocks.com\/Learn-To-Trade\/images\/stochastics.gif"},{"@type":"BreadcrumbList","@id":"https:\/\/learn-to-trade.thehotpennystocks.com\/learn\/stochastics\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/learn-to-trade.thehotpennystocks.com\/learn\/"},{"@type":"ListItem","position":2,"name":"Stochastics"}]},{"@type":"WebSite","@id":"https:\/\/learn-to-trade.thehotpennystocks.com\/learn\/#website","url":"https:\/\/learn-to-trade.thehotpennystocks.com\/learn\/","name":"The Hot Penny Stocks","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/learn-to-trade.thehotpennystocks.com\/learn\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/learn-to-trade.thehotpennystocks.com\/learn\/#\/schema\/person\/d9b297ef0bc2139b978604d35d9d0908","name":"learnstocks","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/cd882c4a69a217d385527d4e3bd8c8796a24ba068718df6731a1b88edb3148ef?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/cd882c4a69a217d385527d4e3bd8c8796a24ba068718df6731a1b88edb3148ef?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/cd882c4a69a217d385527d4e3bd8c8796a24ba068718df6731a1b88edb3148ef?s=96&d=mm&r=g","caption":"learnstocks"},"url":"https:\/\/learn-to-trade.thehotpennystocks.com\/learn\/author\/learnstocks\/"}]}},"_links":{"self":[{"href":"https:\/\/learn-to-trade.thehotpennystocks.com\/learn\/wp-json\/wp\/v2\/posts\/2219","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/learn-to-trade.thehotpennystocks.com\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/learn-to-trade.thehotpennystocks.com\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/learn-to-trade.thehotpennystocks.com\/learn\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/learn-to-trade.thehotpennystocks.com\/learn\/wp-json\/wp\/v2\/comments?post=2219"}],"version-history":[{"count":3,"href":"https:\/\/learn-to-trade.thehotpennystocks.com\/learn\/wp-json\/wp\/v2\/posts\/2219\/revisions"}],"predecessor-version":[{"id":2311,"href":"https:\/\/learn-to-trade.thehotpennystocks.com\/learn\/wp-json\/wp\/v2\/posts\/2219\/revisions\/2311"}],"wp:attachment":[{"href":"https:\/\/learn-to-trade.thehotpennystocks.com\/learn\/wp-json\/wp\/v2\/media?parent=2219"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/learn-to-trade.thehotpennystocks.com\/learn\/wp-json\/wp\/v2\/categories?post=2219"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/learn-to-trade.thehotpennystocks.com\/learn\/wp-json\/wp\/v2\/tags?post=2219"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}