Technical AnalysisIntermediate📖 8 min read

Stochastic Fast

The Raw, Unsmoothed Momentum Rocket for Quick Reversals

Creator
George Lane (1950s)
Key Difference
No smoothing on %D (raw %K averaged lightly)
Typical Settings
%K 14, %D 3 (but %D is just SMA of raw %K)
Personality
Faster signals, more whipsaws

The Stochastic Fast is the original, untamed version of George Lane's Stochastic Oscillator – no extra smoothing on the signal line, just pure %K responsiveness. While the more popular 'Slow' Stochastic adds a 3-period average to calm things down, Fast keeps it raw: lightning-quick reactions to price closing near highs or lows of the recent range. It's twitchier and gives earlier signals, making it a favorite for scalpers, day traders, and anyone hunting ultra-timely overbought/oversold turns or divergences. More noise, more action – handle with care!

Table of Contents

Calculation – Raw and Ready

Fast Stochastic keeps it simple and speedy:

  • Raw %K: (Current Close − Lowest Low N) / (Highest High N − Lowest Low N) × 100.
  • %D: Usually a 3-period simple MA of raw %K (the only smoothing).
  • Standard N = 14.

Compare to Slow: Slow takes raw %K, smooths it into 'Fast %K', then smooths again for %D. Fast skips that first smoothing – hence the name and the zip.

Many platforms label 'Fast' as 14,1,3 – meaning raw %K with light %D smoothing.

Reading Fast Stochastic – Earlier, Wilder Signals

Classic cues, but quicker:

  • Raw %K >80: Overbought – potential top forming fast.
  • Raw %K <20: Oversold – bottom maybe here sooner.
  • %K crosses above %D: Bullish trigger – often leads Slow version.
  • %K crosses below %D: Bearish – early warning of downside.
  • Divergences: Appear earlier than Slow – great for spotting turns.
  • Extreme pinning: In strong trends, can hug 100/0 longer.

Because it's unsmoothed, crossings happen sooner – but false ones too.

Parameter Choices – Dialing the Sensitivity

Common setups:

  • Ultra-fast (5–9 period %K, 1–3 %D): Scalping beast – tons of signals.
  • Standard (14,3): Good balance for day trading.
  • Slightly smoothed (14,5 or 21,3): Calms whipsaws a touch.
  • Longer (21–28): Higher-timeframe use – fewer but cleaner signals.

Shorter = earlier entries (and exits); longer = reliability over speed.

Pro Trading Frameworks

Ways to tame the beast:

  • Early reversal hunt: %K <10 + cross up %D → aggressive long (confirm with candle).
  • Scalp overbought/oversold: >90 sell, <10 buy – tight stops.
  • Trend pullback timing: Uptrend + Fast dips to 20–40 → buy bounce quicker than Slow.
  • Divergence sniper: Fast catches hidden divergences earlier – high-probability setups.
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Always filter with trend (MA/ADX) – Fast loves giving counter-trend signals in strong moves.

Killer Combinations

Pair for power:

  • Slow Stochastic: Use Fast for early alert, Slow for confirmation.
  • Price action: Signal + bullish engulfing/pin bar = higher odds.
  • Volume spike: Extreme reading + volume surge = conviction.
  • Support/Resistance: Oversold at key level = stronger bounce.

The Thrills and the Spills

Strengths

  • Earliest signals among Stochastics – gets you in/out faster.
  • Excellent divergence detector – spots turns before Slow.
  • Great for short-term trading and scalping.
  • Simple and responsive.

Limitations

  • More whipsaws and false crosses than Slow.
  • Can jitter wildly in choppy ranges.
  • Overbought/oversold readings persist longer in trends.

Your Fast Stochastic Checklist

  • Start with 14,3 – classic Fast feel.
  • Add strong trend filter to avoid fighting momentum.
  • Require price/volume confirmation on signals.
  • Use shorter periods only on liquid, intraday charts.
  • Monitor divergences – often the real money-makers.

Key Takeaways

1

Fast Stochastic delivers raw, unsmoothed %K for earliest momentum signals.

2

Quicker crosses and divergences than Slow – perfect for timing aggressive entries.

3

More noise means more false signals – filter heavily with trend and price action.

4

Shines in ranging markets and short-term pullbacks; struggles in strong trends alone.

5

Embrace the speed, manage the whipsaws – and Fast can give you that precious early edge. Stay quick and trade disciplined!

Related Terms

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