The stochastic oscillator indicator is one of the most popular technical indicator options among traders. In addition to being easy to use, the stochastic oscillator indicator can also give us trading signals, when is the best time for you to open a "higher" position and when we should open a "lower" position.
Although this indicator never offers 100% accuracy, of course, you can still improve the accuracy of the hand by combining it with other indicators or combining it with a trading signal app for the right pocket option.
How Stochastic Oscillator Indicator Works and Uses for Pocket Option
The main use of the Stochastic oscillator indicator for pocket options is to detect (Overbought) and (Oversold) conditions on trades. Actually, this use applies not only to the pocket option platform but applies to other platforms. In the Stochastic Oscillator indicator, you can see the presence of different lines dаlаm oscillators уаng often referred to as the %K line for blue color dаn line %D for red. Like the example image below:
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| Stochastic oscillator indicator |
But as for the color and thickness, you can adjust to your convenience when trading. So you can easily distinguish which one is the %K line and which is the %D line. In the example above We used the %K line in blue and the %D line in red, with each thickness of 3X.
Difference Between Overbought and Oversold In Stochastic Oscillator Indicator
The stochastic oscillator indicator can also work well when the market is sideways. This indicator is different from the Fibonacci indicator which can only work on downtrend or uptrend positions. As a reference to buy and sell signals from the Stochastic indicator when the market is trending, the signals that appear should be in the same direction as the ongoing trend. Therefore, you need more precision when using this indicator.
"When the market is in a downtrend, you can look for sell signals, and vice versa during an uptrend, you can look for buy signals. For an example, you can see the image below":
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| Lower signal |
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| Higher signal |
So, as We have said before. The simple way or key to using this stochastic oscillator indicator is that it can be seen during an uptrend position, where you can buy and sell during a downtrend position. I think this method is very simple and easy to understand for you.
That's an easy and simple way how to use the stochastic oscillator indicator in pocket options trading. Hopefully, this method can help you in conducting market analysis, especially on the pocket option platform.
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| COPY ONLY THE BEST TRADERS |
We recommend using this Stochastic indicator on a demo account, Practice what you have learned and start practicing on a demo account to test and improve your skills in trading pocket options using the Stochastic Oscillator indicator. Good luck !!!
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