Type: oscillator
Description of the indicator:
Stochastic indicator - is a universal indicator that shows the overbought oversold trading signals. It compares the closing price extremes over time.
Oscillator consists of two lines:
- Fast Stochastic %K
- Moving average %d
Trading stochastic using the overbought and oversold - 70% and 30% or 80% and 20%. Corresponding indicator chart use 1 to 100 scale. Overbought and oversold usually use as a barometer to determine entry points. Trading system signals when the %K line rises above the %D, entry buy, and when %K is below the %D line entry sell.
We can use stochastic indicator trading divergence.
Forex Trendy is an innovative software capable of detecting the most reliable continuation chart patterns. It scans through all the charts, on all time frames and analyzes every possible breakout.
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