Stochastics

[hagadol]

Trying to get to grips with Stochastics:

What does the relationship between the slow and fast line mean ?

For instance when they are together, apart or they cross. Does this represent anything ?

Various books talk about them showing over bought(above 80) and oversold (below 20), though nothing about the relationship between the two actual lines !

 

[raf110]

Stochastic, this is a VERY difficult subject. I am a part qualified Actuary and I have trouble understanding it. Check out the following link it may help

http://www.fxstreet.com/education/a45.asp

any questions let me know (you will have to be specific)

 

[hagadol]

Thanks for the quick response.

I checked out the link.

I am getting to grips with the subject, though if you have any thoughts on the relationship between the two actual lines, that would be helpful.

Everything I read just seems to refer to the overbought / oversold issues at the extremes. Perhaps there is nothing to read into between where the lines are in relationship to each other.
I might just be getting to complicated and barking up the wrong tree........

 

[raf110]

http://www.prophet.net/learn/taglossary.jsp?index=F&entry=FS

Check out the link, it gives the basic relationship between the lines.

 

[ChowClown]

The "last stochastic technique" is interesting. Slow Stochastic set at 39,1 which generates a single line. Signals are taken when passing through 50 on the scale. Here's a link:

http://www.stockcharts.com/education/TradingStrategies/lastStochastic.html