The Stochastics Slow (PKS) is a momentum indicator, which compares an instrument's closing prices to the high and low prices over a certain period of time. In general, stochastics are used to measure overbought and oversold conditions. Above 80 is considered overbought and below 20 is considered oversold.
Note: You should change the the oversold and overbought levels depending on market conditions. Ensure the level lines cut across the highest peaks and the lowest troughs. During strong trends the Stochastics may remain in overbought or oversold for extended periods.
Like other momentum indicators, the market needs to be trending up or down to get the most reliable signals, i.e. Stochastics is not very useful in a sideways market.
Note, the signals are more reliant on the direction of the underlying long-term trend and remember that confirmation of the signals using other indicators is advised.
The difference between Stochastics Slow Stochastics Fast is sensitivity. Stochastics Fast is useful for very short term trades and Stochastics Slow is thought to be more reliable for longer term trades.
%K = Equal to Fast %D (i.e. 3-period moving average of Fast %K)
%D = A moving average (usually 3-period) of %K
Studies can be added by clicking the studies icon in the Chart Toolbar.
To remove a study from your chart, click [Study Name] and then Delete.