sarmer

It looks like:
the %K is the volatile red line
the Fast %D is the yellow line
the Slow %D is the blue line

It works as: if the Fast %D is higher(lower), it allows an entry (or exit). Since this state could be for several bars, it allows entry over some time. It is not like crossing the slow %D upwards or downwards, which usually would happen in one bar.

Further, at all times you are either in one state or the other (fast %D > slow %D, or fast %D < slow %D), so it always allows either the long or short entry. The only time I think it would disallow any entry would be if fast %d == slow %d, which is rare.

Hope that helps

Is there anyone who could please program for me a custom indicator so that the fast line is above the slow line for stochastics? 

I want to put together the following system, but the stochastics indicator does not have that option.

Anyway, for everones interest, my final system will be as follows:

[5 minute chart]
• 10 period WMA (Weighted Moving Average)
• 20 period SMA (Simple Moving Average)
• Slow Stochastic (10,6,6 (exponential))
• RSI (28)
• MACD (24/52/18 (exponential))

To signal a long trade "BUY" : MA1 > MA2, RSI > 50, MACD Fast > MACD Signal and Stochastic is signaling up (fast line above the slow line).

To signal a short trade "SELL" : MA1 < MA2, RSI < 50, MACD Fast < MACD Signal and Stochastic is signaling down (fast line below slow line).