Stochastics Fast Indicator
07.01.2012
Stochastics indicators measure an instruments current position in relation to the high and low points over a set duration. The indicator is expressed as a percentage. There are many different types of stochastics, including fast and slow. In this blog post, we will be looking at Stochastics Fast indicators.
Stochastic Fast is calculated as:
%K = [(Close - Low) / (High - Low)] x 100
%D = Simple moving average of Fast K (usually 3-period moving average)
In general, Stochastics are used to indicate whether an instrument is oversold or overbought. 80 or above is usually considered overbought, whereas 20 and below is thought of as oversold.
If you wish to apply the Stochastics Fast Indicator go to:
Trading > Charts >
> Oscillators > Stochastics Fast (FST)

The screenshot above shows the Stochastics Fast indicator menu which allows you to adjust the moving average period as well as how other calculation details to suit your personal preferences. You can also adjust the display settings. Once you are happy, click ‘OK’.
As you can see from the screenshot below, we have applied the indicator to a EURUSD chart. The horizontal red line is the level at which an instrument is overbought, and the black link displays oversold.

If you wish to edit the indicator, click on the icon on the top left and select ‘Properties’. You may also wish to make annotations to the chart. To do this click on: ![]()
From here you can add custom lines, shapes, text, and percentage calculations. You can also change the cursor to display price information by right clicking on the chart >Settings > Normal Cursor Information. From here, you can also change the charts settings from the background colour right down to the font style and size!

If you wish to have the same settings for all new charts and studies:
Right click on the chart > Settings > Default Settings
Once you have created the perfect trading environment that suits your style of trading and analysis, click ‘OK’.
