%D (stochastic)
The %D is the 3-period simple moving average of %K and serves as the stochastic oscillator's signal line, whose crosses with %K are the classic signals.
The %D is the stochastic oscillator's signal line: a 3-period simple moving average of %K. By smoothing %K, it removes part of the noise, at the cost of a slight lag : exactly the role the signal line plays in the MACD. On a “slow” stochastic, the displayed %K is already smoothed and %D is a second average of it: the reading stays the same, only the responsiveness changes.
%K / %D crossovers
The stochastic's traditional signal is the cross of the two lines: a %K moving above %D in oversold territory (below 20) is read as a potential buy signal; a %K dropping below %D in overbought territory (above 80) as a potential sell signal. Crosses occurring mid-scale, between 20 and 80, are generally considered less meaningful. In Screener.Trading, a screener rule can combine both conditions (a %K/%D cross and a position below 20) so only complete setups surface, and an automated scan can alert you at every candle close.
In a strong trend, %K/%D crosses against the trend often fail: prefer using them in the direction of the underlying trend, or in rangebound markets.
Keep exploring
- FeatureThe multi-indicator, multi-timeframe screenerCombine technical indicators, timeframes and comparison operators to keep only the assets that match your strategy exactly.
- FeatureAutomated scans: your screeners on autopilotBots watch the market for you: they re-run your screeners at every candle close and e-mail you the moment an asset matches.
- IndicatorStochastic OscillatorA bounded oscillator measuring where price closes relative to its recent extremes: near the highs, the market is strong; near the lows, it is weak.
- IndicatorSimple Moving Average (SMA)The oldest and most widely used trend indicator: an average of recent closes that smooths out market noise and acts as a dynamic reference line.
- Glossary%K (stochastic)The %K is the main line of the stochastic oscillator: it locates the current close, as a percentage, within the range of the last 14 periods.
- GlossarySignal line (MACD)The signal line is the 9-period exponential moving average of the MACD line, whose crossovers with it serve as buy or sell signals.
- GuideBuilding your first screener, step by stepHow to turn a strategy idea into objective rules, pick the right asset universe, read scan results and iterate until you get a genuinely actionable list of opportunities.
- GuideSetting up trading alerts with autoscansLet your screeners watch the market for you: create an autoscan in two clicks, get an e-mail as soon as an asset matches, and avoid noise with a few best practices.