Fast Stochastic - oscillator
Fast Stochastic indicator is one of the modifications of the popular stochastic oscillator S. Lane, which means "fast stochastic". The main task of the oscillator is to determine the overbought and oversold zones of the market, after which the price reversal occurs.
The formula is Fast Stochastic oscillator calculates the ratio of the current closing price to the maximum or minimum for a certain period, thus, the dynamics of the indicator can indicate the speed of price action.
Like the traditional Stochastic, Fast Stochastic on the chart is implemented in the form of lines %K and %D, which are calculated by the following formulas:
%K(i) = 100*(Close(i) - MaxHigh(N)) / (MaxHigh(N) - MinLow(N))
%D(i) = MA(%K(i), P).
Commentary from ForTrader.org: Fast Stochastic oscillator is a slightly modified version of the standard indicator, so its signals will be crossings of lines %K and %D, as well as an exit from the critical ranges. Be sure to test the operation of the indicator before using it.