The Stochastics indicator was introduced by George C.

Lane in the lates. In technical analysis Stochastics is used to show how far the most recent close is away from the lowest low and highest high over the calculated period:.

Stochastics: An Accurate Buy And Sell Indicator

We can differentiate three types of stochastic oscillators: Fast, Slow or Full. Stochastics readings above 80 are typically considered to indicate an overbought situation whereas Stochastics readings below 20 are generally thought to indicate an oversold situation; however, a reading below 20 is not necessarily bullish nor is a reading above 80 automatically a bearish sign.

A stock may continue to rise after its Stochastics has reached 80; conversely; it may continue to fall even after its Stochastics has reached The probability of a reversal is much higher when volume surges occur close to index highs or lows as indicated by the Stochastics. Stochastics is calculated according to flash crash of the stock market in may 2016 following formula: By Victor Kalitowski for MarketVolume.

Stochastics Stochastics Analysis Technical Analysis and Proprietary Indicators. Home Membership FAQs Support. Free Trial no credit card required Technical Analysis MV Volume Indicators.

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How to Trade with Stochastic Oscillator

Technical Analysis, Studies, Indicators: About Stochastics - one of the most used and popular strategies of market timing in technical analysis. About charting and trading systems based on it. Copyright - Highlight Investments Group. This material may not be published, broadcast, rewritten, or redistributed. Our pages are constantly scanned.

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