Stochastic Oscillator is a creation tool analyzes C George Lane in the late 50's. As the name suggests, the value of the range on this indicator is 0-100 (oscillator). Stochastic Oscillator is used to indicate the position relative to the range of closing the transaction in a period of time. Basically, this indicator is used to measure the relative strength of the price of the last lapse of the highest price to its low-tar and the lapse of the period during which we want. Stochastic Oscillator consists of two lines called% K and% D. The core of this indicator is the% K and% D itself is a school of% K. Can be said that the% D line is as identifying the direction% K.
If we see from the Stochastic Oscillator range 0-100 that is, in fact it can be said that this indicator is not different from the RSI. Only in the Stochastic calculation includes the lowest price possible, and the highest closing price at the time. While for the% D% of high school is K itself. By default value usually is 14% K and% D is 3. % D election period only 3 of the period studied to improve the sensitivity of the% D itself. The question whether in addition to the value. Of course, as can other indicators. However, there are several types of Stochastic Oscillator where we can not change the big% D. We will learn later.
Fast, Slow and Full Stochastic Oscillator
Just as the RSI indicator also oscilator, as well as lack of excess Stochastic is its sensitivity. Senstif because it can provide a signal that more early in monitoring the price movements. But with the emergence of such a rift various false signal. To reduce the number of false signals because of the sensitivity Stochastic needed more than just% D to its haluskan. % K line can be mashed before then processed back into% D. Processing is a different variant of the Stochastic Oscillator.
Fast Stochastic is the name of Stochastic usual. When the% K muluskan SMA 3 in the period before and then treated again with 3 SMA peride next to obtain the% D will be the Slow Stochastic Oscillator. Meanwhile, when the pe mulusan use with high school period than 3% for K, the so called Stochastic Full Stochastic Oscillator. Nowadays pemulusan of Stochastic% K is not only the school but can also use WMA and XMA. So, in fact depends on which you match. I will only discuss how to read Fast Stochastic Oscillator, for other variants in the same way it. Is a different sensitivity to and akuratan its course. And do not forget there is the determination of the period disinii. If we change% K periodenya become larger or smaller than the 14 also produces a different depending on the accuracy of your transaction pair kan.
Interpretation Stochastic Oscillator
There is some information we can get with Stochastic oscillaotr. But in general, does not vary with the information on the RSI and SMA. And the Stochastic Oscillator is actually a combination of both types of indicators of how the calculation is different. Overall, this indicator can be used to determine the overbought / oversold (which means the predicted trend for the long term), a discount of% K and% D (as a short term trend), and Bullish / Bearish centerline.
Overbought / Oversold
The state of overbought / oversold obtained when the Stochastic% K line has entered the limits of 20 and 80 of the 20 to 80 above and oversold to overbought. RSI is not the same? Please also note that this is not a limitation 20/80 absolute limits. Can only 30/70 or the other. So do not wonder if I also use the restrictions in different conditions determine overbought / oversold from this situation.
The state of overbought / oversold this will trigger the decline in the price rise in the long term. If there are price increase but the stochastic is overbought its point and start to leave the area, that means there will be pressure on the rate of price increase in the price of making akhrinya back down to its new seimbangan.
% K and% D Crossing
Then, if the restrictions overbougth / oversold for long-term trend, the discount per% K and% D we can use this trend to minor changes. That is so, if the conditions in a long Bullish trend, we often find in pergerakannya trend-minor trend. The amount of minor and major here is very relative, depending on the time line that we use. Time line for the hour-an hour, for example, is not unimportant minor trend is a movement because it can reach the 50 point! That means more than enough to gain up to 50 Dollars with only 1 lot and rely on minor trend.
As we know before the% D% K MA's not another reflection of price changes. So, according to the MA in determining the nature of the change trend, each perpotongan between the% D% K is the change means that the trend for the short time in the future. Bullish condition occurs when the% K% D cut from the bottom and vice versa Bearish trend obtained when K% cut from the top. This can only take place even when the second line in the region are overbought / oversold. If this happens, that means the pressure to buy or sell are very strong so there will be a possibility of price limits penetrate and support ressistance it.
The Centerline
Similar to the other oscillator, the Stochastic Oscillator is also located on the centerline of patok on the value of 50. Centerline reading this is exactly the same way with the reading on the RSI. When K% cut from the centerline under this condition indicates Bullish Centerline and vice versa when the% K under the condition of the crop Bearish reached. Simple is not it? However honest centerline crossover is rarely used because it is often too late to give recommendations buy / sell. The analysts often use a snippet of the% D% K.
Well, until the discussion here about the Stochastic Oscillator. Before we move to the other indicators, it is necessary to remind me again about the subject character Stochastic indicator oscillator such as this. It is a surplus at the same time the lack of indicators moving in a range like this is sensitivitasnya. Similarly on the Stochastic can be very sensitive when we use the period that is not right. The use period is not appropriate to bring us on a wrong decision that ultimately brings us to the big loss. Therefore, it is highly recommended that you seek the best on this indicator for each pairs. The amount can vary. The longer the period of the graph is used indicators will be more subtle means of sensitivity-to-annya will be reduced. Also recommended to use the Full Stochastic is because in the use of more subtle and can reduce the indicators that are too graphic curls.
If we see from the Stochastic Oscillator range 0-100 that is, in fact it can be said that this indicator is not different from the RSI. Only in the Stochastic calculation includes the lowest price possible, and the highest closing price at the time. While for the% D% of high school is K itself. By default value usually is 14% K and% D is 3. % D election period only 3 of the period studied to improve the sensitivity of the% D itself. The question whether in addition to the value. Of course, as can other indicators. However, there are several types of Stochastic Oscillator where we can not change the big% D. We will learn later.
Fast, Slow and Full Stochastic Oscillator
Just as the RSI indicator also oscilator, as well as lack of excess Stochastic is its sensitivity. Senstif because it can provide a signal that more early in monitoring the price movements. But with the emergence of such a rift various false signal. To reduce the number of false signals because of the sensitivity Stochastic needed more than just% D to its haluskan. % K line can be mashed before then processed back into% D. Processing is a different variant of the Stochastic Oscillator.
Fast Stochastic is the name of Stochastic usual. When the% K muluskan SMA 3 in the period before and then treated again with 3 SMA peride next to obtain the% D will be the Slow Stochastic Oscillator. Meanwhile, when the pe mulusan use with high school period than 3% for K, the so called Stochastic Full Stochastic Oscillator. Nowadays pemulusan of Stochastic% K is not only the school but can also use WMA and XMA. So, in fact depends on which you match. I will only discuss how to read Fast Stochastic Oscillator, for other variants in the same way it. Is a different sensitivity to and akuratan its course. And do not forget there is the determination of the period disinii. If we change% K periodenya become larger or smaller than the 14 also produces a different depending on the accuracy of your transaction pair kan.
Interpretation Stochastic Oscillator
There is some information we can get with Stochastic oscillaotr. But in general, does not vary with the information on the RSI and SMA. And the Stochastic Oscillator is actually a combination of both types of indicators of how the calculation is different. Overall, this indicator can be used to determine the overbought / oversold (which means the predicted trend for the long term), a discount of% K and% D (as a short term trend), and Bullish / Bearish centerline.
Overbought / Oversold
The state of overbought / oversold obtained when the Stochastic% K line has entered the limits of 20 and 80 of the 20 to 80 above and oversold to overbought. RSI is not the same? Please also note that this is not a limitation 20/80 absolute limits. Can only 30/70 or the other. So do not wonder if I also use the restrictions in different conditions determine overbought / oversold from this situation.
The state of overbought / oversold this will trigger the decline in the price rise in the long term. If there are price increase but the stochastic is overbought its point and start to leave the area, that means there will be pressure on the rate of price increase in the price of making akhrinya back down to its new seimbangan.
% K and% D Crossing
Then, if the restrictions overbougth / oversold for long-term trend, the discount per% K and% D we can use this trend to minor changes. That is so, if the conditions in a long Bullish trend, we often find in pergerakannya trend-minor trend. The amount of minor and major here is very relative, depending on the time line that we use. Time line for the hour-an hour, for example, is not unimportant minor trend is a movement because it can reach the 50 point! That means more than enough to gain up to 50 Dollars with only 1 lot and rely on minor trend.
As we know before the% D% K MA's not another reflection of price changes. So, according to the MA in determining the nature of the change trend, each perpotongan between the% D% K is the change means that the trend for the short time in the future. Bullish condition occurs when the% K% D cut from the bottom and vice versa Bearish trend obtained when K% cut from the top. This can only take place even when the second line in the region are overbought / oversold. If this happens, that means the pressure to buy or sell are very strong so there will be a possibility of price limits penetrate and support ressistance it.
The Centerline
Similar to the other oscillator, the Stochastic Oscillator is also located on the centerline of patok on the value of 50. Centerline reading this is exactly the same way with the reading on the RSI. When K% cut from the centerline under this condition indicates Bullish Centerline and vice versa when the% K under the condition of the crop Bearish reached. Simple is not it? However honest centerline crossover is rarely used because it is often too late to give recommendations buy / sell. The analysts often use a snippet of the% D% K.
Well, until the discussion here about the Stochastic Oscillator. Before we move to the other indicators, it is necessary to remind me again about the subject character Stochastic indicator oscillator such as this. It is a surplus at the same time the lack of indicators moving in a range like this is sensitivitasnya. Similarly on the Stochastic can be very sensitive when we use the period that is not right. The use period is not appropriate to bring us on a wrong decision that ultimately brings us to the big loss. Therefore, it is highly recommended that you seek the best on this indicator for each pairs. The amount can vary. The longer the period of the graph is used indicators will be more subtle means of sensitivity-to-annya will be reduced. Also recommended to use the Full Stochastic is because in the use of more subtle and can reduce the indicators that are too graphic curls.
