How to Trade with the Stochastic Oscillator‎ - Part 1

Ok Guys let's talk about Stochastics now http://www.contracts-for-difference.c... ; these are similar to RSI. PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! Stochastics are an oscillator; they are a momentum indicator meaning they oscillate between the values of 0 and 100. You can't get any higher than 100, you can't get lower than 0. Overbought is anything above 80 and oversold is anything below 20 There are two types of Stochastic Oscillator, and two components to each of them. The first component has the unusual name of %K, and this is the basic calculated indicator. It's called %K because, as explained above, Dr. Lane was experimenting with many different indicators, and he labelled them alphabetically. The one that worked just happened to be the 11th he tried. It's usually normalized to a percentage, and as with many oscillators, it can be used to indicate oversold conditions, at 20% to 30%, or overbought conditions, at 70% to 80%.