A stochastic is an oscillator that will help us measure the overbought and oversold conditions in the market .The Stochastic is an another indicator to help us to know where a trend will be ending. A technical indicator used to compare a security's closing price to price range over a given period
The Stochastics are scaled from 0 to 100.The stochastics tells us when the market is overbought or oversold.
When the stochastic lines are under 30 (the green line), it means that the market is oversold ,When the stochastic lines are up 70 (the red line in the chart) it means the market is overbought .the trade can sell when the market is overbought and buy when the market is oversold.
Stochastics are another indicators used to helps us to determine where a trend will be ending.A stochastic is an oscillator that measures overbought and oversold conditions in the market. The 2 lines are similar to the MACD,the on line is faster than the other line.
HOW TO APPLY STOCHASTICS
The stochastics let us know when the market is overbought or oversold. When the stochastic lines are under 30 (the green line) ,it means that the market is oversold but When the stochastic lines are up 70 (the red line), it means that the market is oversold. , we can sell when the market is overbought and we buy when the market is oversold.
that the stochastics has showing overbought conditions as we can see on the chart.
Many traders use stochastics in different ways,but the main use of the indicator is to deterermine if the market is overbought or oversold.
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