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STC (SLOW) |
The Stochastic (Slow) is the smoothing to the Stochastic (STC), it reduces volatility and improve signal accuracy. Same with the other stochastic indicators, the signals to look for are oversold securities with values are less than 20 and overbought when greater than 80. |
Stochastic performs best in broad trading ranges, or in a mild trend with a slight upward or downward bias. The worst market for normal use of stochastic is a persistent trending market that has only minor corrections.
Figure: A STC (Slow) chart of Hang Seng Bank
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