[Free_Forex_Trading_Signals] What is the “Stochastic Oscillator”?

 

The stochastic oscillator is a momentum indicator used in technical analysis, introduced by George Lane in the 1950s, to compare the closing price of a commodity to its price range over a given time span.

Closing levels that are consistently near the top of the range indicate accumulation (buying pressure) and those near the bottom of the range indicate distribution (selling pressure).

The idea behind this indicator is that prices tend to close near their past highs in bull markets, and near their lows in bear markets. Transaction signals can be spotted when the stochastic oscillator crosses its moving average.

Two stochastic oscillator indicators are typically calculated to assess future variations in prices, a fast (%K) and slow (%D). Comparisons of these statistics are a good indicator of speed at which prices are changing or the Impulse of Price.  %K is the same as Williams's %R, though on a scale 0 to 100 instead of -100 to 0, but the terminology for the two are kept separate.

Find an interesting article at http://bit.ly/quBobE

__._,_.___

Reply to sender | Reply to group | Reply via web post | Start a New Topic

Messages in this topic (1)

Recent Activity:

• New Members 12
• New Photos 14

Visit Your Group

Hai, dear members. If you find  our signal is helpful to you, please share this trading signals to your friends by inviting them into our group. So your friends can also enjoy our Forex Trading Signals.


To see more of my analysis and free signals please Join to my Facebook Group :
http://www.facebook.com/groups/205823876144607/

You can also Follow my blog :
http://freeforextradingsignalsffts.blogspot.com/

Please Join also to my Free Forex Trading Signals mailing list :
http://finance.groups.yahoo.com/group/Free_Forex_Trading_Signals/

You can also Follow my Forex Twitter acc :
https://twitter.com/#!/Rezanades_FX

Switch to: Text-Only, Daily Digest • Unsubscribe • Terms of Use

.

__,_._,___