3 Types of Bitcoin Stochastic Indicators

Fast, Slow and Full Stochastic

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

All the 3 versions of this stochastic oscillator cryptocurrency indicator look at a given period for example the 10-day period, and measure how today's btcusd 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.

Stochastic oscillator cryptocurrency indicator works based on the principle that:

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

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

Fast Stochastic Oscillator Crypto Indicator

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

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 overbought and oversold levels. The fast stochastic lines are prone to fake bitcoin trading signals/whipsaws.

Slow Stochastic Oscillator Crypto Indicator

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

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

Full Stochastic Oscillator Crypto Indicator

Full Stochastic Oscillator Crypto Indicator - this stochastic oscillator does not use a fixed moving average period, like the slow bitcoin trading stochastic oscillator version above. Bitcoin traders don’t want to use a fixed setting to calculate the stochastic cryptocurrency indicator.

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

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