|
STOCHASTICS
|
|
|
|
Learn
to effectively use the stochastics indicator
|
|
|
The stochastics indicator is a
popular oscillator to gauge the price momentum and age
of a price movement.
The stochastics indicator helps
judge a condition in which a commodity is considered
"overbought" or "oversold". These
conditions are when a commodity has apparently gone too
far in one direction and appears to be ready for a
correction.
A signal is usually given when
the indicator has gone to an extreme level, up or down,
and the two lines cross as shown in the chart below.
|
