The classical interpretation of stochastic

The classical interpretation of stochastic can be complicated. The basic method is to buy when the SK SD is over, and sell when the SK moves under SD. However, stochastic employs a calculation period to period, which can move around erratically as the earliest data point is reduced to calculate the next day. Because of this instability and false signals generated, using a stochastic input and output signals can make many unprofitable trades. To compensate for this inherent weakness, buy signals are generally reinforced when the crossover occurs in 10-15% range, and sold in the 85-90% range.