Education

Tutorial : how to use STOCHASTIC indicator

Updated

within a range :

use bullish and bearish div as a confirmation
use buy low sell and sell high

in trend continuation and trading reversal

for trend continuation:

use the buy low method in a bullish trend.
exemple each time the stochastic is low
and crossing in a bull market you can buy(work
only on higher TF : 4h , daily, weekly). -20 is optimal
important : have to be completed with more indepth T.A

vice versa for bearish trend, sell the stochastic
when it is a high point (+90 is optimal)

for trend reversal:
use bearish or bullish div
completed with more indepth ta , like always

Note

real chart exemple within a range :

Note

real chart exemple within a bullish trend (bitcoin bullrun 2014)

Note

2016*

Note

real exemple during a bearish trend (gold 2011-2012)

Note

dont force it when you analysis is wrong. for exemple during the +10y bull market dont sell every high of the stochastic. only use buy low because its a bull market. if you dont do that you win a lot of money if you make the contrary of the trend your account will punish you

personally i will make that to win a lot within gold and silver bull run, i will buy every -20 stochastic i see

Note

bullish div work in bullish trend and vice versa

so that add more possible position

stochastic is possible to use every day

focus on bullish div in a bullish trend, and focus on bearish div on bearish trend

YKWIM

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