Technical Indicators

• Average True Range
• Bollinger Bands
• Linear Regression
• Moving Average Convergence/Divergence (MACD)
• Momentum
• Moving Average
• Parabolic SAR
• Relative Strength Index (RSI)
• Standard Deviation
• Stochastic

Stochastic

This oscillator consists of two lines: main line is called %K (%K is Fuchsia color) and the secondary is called %D (%D is Navy Color). In the main line (%K) fluctuations are usually more distinct than in the secondary line (%D), because %D - is moving average for the line %K. Stochastic indicator is measured on a scale from 0% to 100%.

Methods of usage

• If both lines have topped in the upper zone (above 80% mark) and then the indicator returned to the middle zone, the rate would move in the same direction.
• If both lines have bottomed in the lower zone (below 20% mark) and then the indicator returned to the middle zone, the rate would move in the same direction.
• Divergence: if rates produce series of new minimum/maximum and the oscillator doesn't then some rate correction is possible in the direction of the oscillator's movement.

previous