3 Types of Bitcoin Stochastic Indicators

Fast, Slow and Full Stochastic

There are 3 types of Bitcoin Stochastic Oscillator Crypto Indicators: fast, slow and full stochastic technical indicator.

All the 3 versions of this stochastic oscillator trading look at a given period e.g. the 10-day period, & measure how today's bitcoin price close compares to the high and low range of the time period that is being considered in the bitcoin trading calculation of stochastic oscillator indicator.

Stochastic oscillator indicator works based on the principle that:

During an upward bitcoin crypto trend, bitcoin price action tends to close at the high of the candle.
During a downward bitcoin crypto trend, bitcoin price action tends to close at the low of the candle.

Stochastic Oscillator shows the strength of the Bitcoin trends, and identifies times when a bitcoin trading is oversold or overbought.

Fast Stochastic CryptoCurrency Indicator

Fast Stochastic Crypto Indicator - fast stochastic oscillator indicator plots two lines, one solid & one dotted on the indicator section. These 2 lines are called the %K line and %D line. In this versions the %K and %D lines are calculated differently from other versions, so that to add smoothing out.

One disadvantage of using this fast stochastic cryptocurrency indicator version is that the %K and %D lines are too sensitive and they often give bitcoin trading whipsaws when they get to the over-bought & over-sold levels. The fast stochastic oscillator indicator lines are prone to fake bitcoin signals/whipsaws.

Slow Stochastic Oscillator Technical Crypto Indicator

Slow Stochastic Oscillator Indicator - slow stochastic oscillator indicator smoothes out the bitcoin price data used for the original calculation & it is used by many Bitcoin traders. This slow stochastic cryptocurrency indicator version is less prone to whipsaws compared to the fast stochastic oscillator version.

For the slow stochastic cryptocurrency indicator. A 3 period moving average MA is used to smooth out stochastic oscillator indicator lines. The moving average is not that of the bitcoin price action but of the stochastic indicator lines data.

Full Stochastic Crypto Indicator

Full Stochastic CryptoCurrency Indicator - this stochastic oscillator does not use a fixed moving average MA period, like the slow bitcoin trading stochastic oscillator version above. Bitcoin traders do not want to use a fixed setting to calculate stochastic bitcoin indicator.

Because of this reason the full stochastic was developed by bitcoin traders & it is more flexible than the earlier two bitcoin stochastics oscillator versions.

Full stochastic oscillator indicator version allows traders to choose the period they want for the fast & slow bitcoin trading stochastic indicator line.

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3 Types of Bitcoin Stochastic Indicators