Stochastics

Good Morning Dynamic Traders

"Better to have tried and failed, than not tried at all"

Cross = AUD : Day Chart (Posted Below)

Long Term Trend = Down : Short Term Trend = Down

Stochastics

Momentum Oscillator comes in Fast, Slow and Full. Slow is the commonly used one.

%K = Fast line
%D = Signal line ( 5day Simple MA of %K)

Measured 0-100, 80+= Upper (Over Bought), -20= Lower (Over Sold)
Break below 80 Line = Sell
Break above 20 Line = Buy

Bigger the distance between %K and %D = Bigger the momentum

Can be used for Price Convergence / Divergence like MACD

Can give false readings, Advanced Get will display signal for false reading.

Best used with other indicators for conformation

Look at the chart below to see where Fast line has crossed above and below the signal line with relevance to price. Blue = Above and Red = Below. Powerful signals ?

We have the FAST line moved above the signal line and crossing the 20 line pointing up. Is this the start of a move up ?

RSI is pointing up but below the midline.

MACD line is turning, however is below the zero line and we have convergence with price.

Where will we go to ????

Please do your own analysis before placing a trade and USE a stop.

Watch for Major news items tomorrow on AUD, EUR, USD and GBP Beware !
















Courtesy of Advanced Get / E Signal

Trade with Passion

John Maher
Forex Analyst