Stochastic Trading Indicator 📉📉📉📉 The Stochastic Oscillator is a momentum indicator that shows the location of the close relative to the high-low range over a set number of periods. The indicator can range from 0 to 100. The closing price tends to close near the high in an uptrend and near the low in a downtrend, the stochastic indicator is a two-line indicator that can be applied to any chart. It fluctuates between 0 and 100. The indicator shows how the current price compares to the highest and lowest price levels over a predetermined past period.
📉 How do you use a stochastic indicator?
How to use the Stochastic indicator and “predict” market turning points
If the price is above 200-period moving average (MA), then look for long setups when Stochastic is oversold.
If the price is below 200-period moving average (MA), then look for short setups when Stochastic is overbought.
📉 Is fast stochastic good?
The "fast" stochastic uses the most recent price data, while the "slow" stochastic uses a moving average. Therefore, the fast version will react more quickly with timely signals, but may also produce false signals. The slow version will be smoother, taking more time to produce signals, but may be more accurate.
Do you use Stochastic Indicator ?
