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Stochastic can show divergence, when Slow %K and Slow %D values decline and closing price values increase, or Slow %K and Slow %D values increase and closing price values decrease. The Stochastic values are moving in one direction and the price values are moving in the opposite direction.

The normal setting is 14,3,3 or 10,3,3, but this can be overly sensitive to price movement. Changing the settings to a longer period such as 21, 13,8 will give less frequent crossovers, and the overbought/oversold levels will be more realistic as they will occur less often.
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