You will learn
- What the Stochastic Oscillator is
- How it works
- How to use it in trading
In-depth description of this webinar
The Stochastic Oscillator is a momentum indicator that shows the location of the close relative to the high-low range over a set number of periods. The indicator can range from 0 to 100. The closing price tends to close near the high in an uptrend and near the low in a downtrend. If the closing price then slips away from the high or the low, then momentum is slowing. Stochastics are most effective in broad trading ranges or slow moving trends. Two lines are graphed, the fast oscillating %K and a moving average of %K, commonly referred to as %D.
Be aware trading carries risk and not all strategies or rules work the same every time or have the same results for each trader. You should always understand your risks
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.