Given the hundreds of indicators that are available to traders, finding the appropriate technical tools to use in day trading can be a difficult task.

The good news is that the majority of indicators can be used in day trading simply by adjusting the number of time periods used in creating the indicator.

Most traders are accustomed to seeing each indicator use each daily close as one period in the calculation, but they quickly forget that the interpretation remains the same whether the data used in one period is equal to a day, a minute, a week, a month or a quarter.

One indicator chosen by many traders is the fast or slow stochastic oscillator.

To learn more, see What is the difference between fast and slow stochastics? The slow stochastic is one of the most popular indicators used by day traders because it reduces the chance of entering a position based on a false signal.

In general, a slow stochastic measures the relative position of the latest closing price to the high and low over the past 14 periods. When using this indicator, the main assumption is that the price of an asset will trade near the top of the range in an uptrend and near the bottom in a downtrend. This indicator is very effective when used by day traders, but one problem that may arise is that some charting services might not include it as an option on their charts. If this is the case for you, you may want to consider re-evaluating which charting service you use.

For more information on the stochastic indicator, see Getting To Know Oscillators - Part 3. Currency hedging interest rate differential Term Of The Day.

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The main difference between fast and slow stochastics is summed up in one word: The fast stochastic is more Explore the function of the stochastic oscillator indicator, and discover other technical indicators traders use to complement Discover how the stochastic oscillator and the Stochastic Momentum Index differ and why the latter is considered a more refined Understand the basics of the stochastic oscillator and how analysts and traders use this measure of trend momentum to predicts Learn about the stochastic oscillator and how to it is used to create an effective forex trade strategy, including how to Understand the basics of the stochastic oscillator and how to use this momentum metric in tandem with other indicators to Stochastics can be very effective as the second screen in demarker forex strategy three-part system.

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Find out how forex trading regulation in india use this popular oscillator. Weekly Stochastics uncovers patterns of buying and selling pressure that can be predicted and capitalized upon by observant investors and traders.

Stochastic and MACD oscillators can help isolate greater opportunities in range-bound markets. Select multiple indicators, avoid information overload and optimize indicators to effectively use technical analysis tools. Two indicators are usually better than one.

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