A stochastic oscillator is a momentum indicator comparing a particular closing price of a security to a range of its prices over a certain period of time. The sensitivity of the oscillator to market movements is reducible by adjusting that time period or by taking a moving average of the result. It is used to generate overbought and oversold trading signals, utilizing a 0-100 bounded range of values.
Traditionally, readings over 80 are considered in the overbought range, and readings under 20 are considered oversold. However, these are not always indicative of impending reversal; very strong trends can maintain overbought or oversold conditions for an extended period. Instead, traders should look to changes in the stochastic oscillator for clues about future trend shifts.
You can use this indicator for predict the price changes. But I do not recommend you to use it alone!
Allways combine with another tool to get better signals.
When the Sign events happened: the indicator gives you the following notifications:
– Buy or Sell sign appears on the chart
– Soundfile (that you have choosen) will played
– Email and Telegram notifications arrive to you.
So you do not need to stay at the front of your computer from 0-24! This and all of AlgoGURU indicator monitors the market while you can do something else and notifies you if something has happened!
– Free version works on demo accounts and with EURUSD/D1 only without time limit.
– Full version works without limitations