Thursday, January 17, 2019
Banner Top

Stochastic Indicator

The Stochastic Indicator developed by George Lane, shows the location of the close relative to the high/low range over a set number of periods.

 

The Stochastic oscillator also identifies possible overbought and oversold areas. Generally, when the indicator reaches above 75, the asset is said to be overbought, and when it drops under 25 the asset is oversold.

 

When crossing the overbought area from above, the stochastic signals a possible sell opportunity. On the other hand, when it crosses the oversold area from below, it signals a possible buy opportunity.

Banner Content
Tags: ,

Related Article

0 Comments

Leave a Comment