About this document
Using the Stochastic Indicator in Forex by paolo is a document available to read on EtoBox.
The Stochastic indicator was created in the 1950s to measure momentum in prices. It identifies overbought and oversold conditions by using values between 0-100, with readings over 80 indicating overbought and under 20 indicating oversold. Traders typically buy when the market is oversold and sell when it is overbought, as a reversal is likely. The document provides an example of a currency chart that was overbought for an extended period, suggesting a price drop was imminent based on the Stochastic signalin
- Author
- paolo
- Language
- EN