the right swing to boost your profit. Notice how the stock moved to a new low, but the Stochastic Oscillator formed a higher low. The Stochastic Oscillator moved below 50 for the second signal and the stock broke support for the third signal. Based on this assumption the Stochastic indicator works to give you the best trade signals you can possibly find. Readings above 80 for the 20-day Stochastic Oscillator would indicate that the underlying security was trading near the top of its 20-day high-low range. Traders could have acted when the Stochastic Oscillator moved above its signal line, above 20 or above.
A signal line cross occurs when K (black) crosses D (red). K is multiplied by 100 to move the decimal point two places. Suggested Scans Stochastic Oscillator Oversold Upturn This scan starts with stocks that are trading above their 200-day moving average to focus on those in a bigger uptrend. Trend reversals: When the Stochastic is changing the direction and leaves the overbought/oversold areas, it can foreshadow a reversal. Before we get into using the Stochastic, we should be clear about what momentum actually. Sofern Sie Long gehen, setzen Sie den Stop-Loss auf das kurzfristige Tief. Another reputable oscillator is the RSI indicator which is similar to the Stochastic indicator, but we chose it over the RSI indicator because the Stochastic indicator puts more weight on the closing price which by the way is the most important price no matter what. Trading Strategy m interprets the charts and the indicators in an unorthodox way, but at the same time, its very productive. A high Stochastic means that the price is able to close near the top and it keeps pushing higher. In a similar vein, oversold readings are not necessarily bullish.