**Description**

The Fast Stochastic Oscillator is a momentum indicator. It presents the location of the closing price of a market in relation to the high and low range of the price of the market over a period of time. As compared to the Full Stochastic Oscillator, the Fast Stochastic Oscillator uses less smoothing and therefore follows price fluctuations more quickly.

**Formula **

**Elements Used**

**Example parameter values**

Time Resolution: 1 hour

Number of time periods used to compute Fast %K: 14

Number of time periods used to compute moving average of Fast %K: 3

Oversold threshold: 20

Overbought threshold: 80

**Parameter Descriptions**

**Time Resolution**: This is the time window for each period being analyzed. If this is chosen as 1 hour, and the number of time periods used to compute Fast %K is 14, then the past 14 hours will be used to compute the Fast %K. If it is instead chosen as 1 minute, then the indicator will use the past 14 minutes.**Number of time periods used to compute Fast %K**: If this value is 14, and the Time Resolution is 1 hour, then the Fast %K will use the lowest low and highest high from the past 14 hours.**Number of time periods used to compute Fast %D (SMA of Fast %K)**: If this value is 3, and the Time Resolution is 1 hour, then the Fast %D will be the 3 hour simple moving average of the Fast %K.**Oversold threshold**: Fast %D values fluctuate from 0 to 100. Usually a lower value indicates it is oversold. Using the above example, if this value is set to 20, then when the value of Fast %D is below 20 (i.e. 0 to 20), this creates a buy signal.**Overbought threshold**: Fast %D values fluctuate from 0 to 100. Usually a higher value indicates it is overbought. Using the above example, if this value is set to 80, then when the value of Fast %D is above 80 (i.e. 80 to 100), this creates a sell signal.

**Helpful Links**