✅ Trade with our Sponsor Broker: Trade Nation
http://www.financial-spread-betting.com/ccount/click.php?id=95✅ Check our website:
http://www.financial-spread-betting.com/✅ Please like, subscribe & comment if you enjoyed - it helps a lot!
How to Use Stochastic Indicator.
http://www.financial-spread-betting.com/course/stochastics-indicator.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! Stochastic Momentum Index indicator for Forex, stocks and E-minis
First Look at the Stochastic Indicator. The stochastic momentum index (SMI) can indicate when a trend is strong (for entry points) and when a trend is weak (for exit points). This lesson looks at the stochastic indicator, which is another momentum indicator and oscillator. As a reminder, an oscillator has a theoretical range from 0% to 100%, but the action zones are above 70% or 80% and below 30% or 20%. Whether you take the more extreme values depends on the characteristics of the stock you are trading, and you need to look back over the chart to see what may work best.
The stochastic oscillator works from calculations on where the closing price is in relation to the daily range. If the uptrend is strong, and therefore has momentum, the closing price will tend to be towards the upper end of the range, and vice versa. It can be very powerful, and 20 years ago was almost regarded as a holy grail by traders.
As an oscillator, you can expect in a steady trend that it will go to an extreme value and stay there, so merely being at that value does not signal a trade. You may even choose to use the technique given in the last lesson on the RSI, and wait for a retracement in a strong uptrend to cause the oscillator to hit the lower value before considering a trade.
One of the interesting features of the stochastic indicator is that there are two lines plotted below the chart. On a black-and-white chart the solid line, %K as it is called, is the actual oscillator line, and the dashed line, %D, is a signal line. The signal line is simply a three period moving average of %K, which means it has a smoother profile. If you’re using a colour chart, you will be able to set the colours that work best for you.
As the name suggests, the signal line helps in determining when to enter and sometimes exit the trade. Just as the moving average crossover on a price chart can give you a signal, the signal line on the stochastic indicator can give you a trading signal. Simply look for it to cross the oscillator line when in an overbought or oversold area on its way back to the other end. The video gives several examples of this.
There is a further refinement of the stochastic indicator. The particular indicator we have been talking about is called the Fast Stochastic. Some traders use what is called the Slow Stochastic, which takes the Fast Stochastic %D, calls it the new %K, and takes a further moving average to generate another %D. The Slow Stochastic smoothes out the variations further, which generally means it gives fewer later signals, but may reduce the number of false signals.
As with all oscillators, it is important not to mechanically place a trade simply because of the position of the line. You need to assess the situation and determine, preferably using other methods, whether it is a likely trading situation. No one indicator can give you a reliable trading signal without considering other factors.
✅ Our channel sponsor for this month are Trade Nation meaning these guys are covering our costs of operation. We only accept reputable and properly regulated providers as sponsors. Please support us by trading with this provider. Trade Nation offer the popular MT4 platform as well as an easy-to-use web trading platform with fixed spreads.
Sign up with Trade Nation:
http://www.financial-spread-betting.com/ccount/click.php?id=95📜 Disclaimer 📜
81.7% of retail investors lose money when trading CFDs and spread betting with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Related Videos
The Stochastic Indicator: When it Works, When it Doesn't & Why - Part 1 📈
https://www.youtube.com/watch?v=V6n2GzGlDZMStochastics Trading Strategy Part 2 📈
https://www.youtube.com/watch?v=i9QzG5PCXWAHow to Profit from using the RSI (Relative Strength Index)? Part 1 📈
https://www.youtube.com/watch?v=gOI9RNt7iKIRSI Indicator Trading Strategy Part 2 📈
https://www.youtube.com/watch?v=YPVOB4Bc7TMHow To Filter Out RSI Indicator Fake Signals
https://www.youtube.com/watch?v=NNF6ci_nxeoMulti Time Frame Analysis With Oscillators
https://www.youtube.com/watch?v=KXDQ-QR3ccoAbout the Site 🌐
This site provides links to random videos hosted at YouTube, with the emphasis on random. 🎥
Origins of the Idea 🌱
The original idea for this site stemmed from the need to benchmark the popularity of a video against the general population of YouTube videos. 🧠
Challenges Faced 🤔
Obtaining a large sample of videos was crucial for accurate ranking, but YouTube lacks a direct method to gather random video IDs.
Even searching for random strings on YouTube doesn't yield truly random results, complicating the process further. 🔍
Creating Truly Random Links 🛠️
The YouTube API offers additional functions enabling the discovery of more random videos. Through inventive techniques and a touch of space-time manipulation, we've achieved a process yielding nearly 100% random links to YouTube videos.
About YouTube 📺
YouTube, an American video-sharing website based in San Bruno, California, offers a diverse range of user-generated and corporate media content. 🌟
Content and Users 🎵
Users can upload, view, rate, share, and comment on videos, with content spanning video clips, music videos, live streams, and more.
While most content is uploaded by individuals, media corporations like CBS and the BBC also contribute. Unregistered users can watch videos, while registered users enjoy additional privileges such as uploading unlimited videos and adding comments.
Monetization and Impact 🤑
YouTube and creators earn revenue through Google AdSense, with most videos free to view. Premium channels and subscription services like YouTube Music and YouTube Premium offer ad-free streaming.
As of February 2017, over 400 hours of content were uploaded to YouTube every minute, with the site ranking as the second-most popular globally. By May 2019, this figure exceeded 500 hours per minute. 📈
List of ours generators⚡
Random YouTube Videos Generator
Random Film and Animation Video Generator
Random Autos and Vehicles Video Generator
Random Music Video Generator
Random Pets and Animals Video Generator
Random Sports Video Generator
Random Travel and Events Video Generator
Random Gaming Video Generator
Random People and Blogs Video Generator
Random Comedy Video Generator
Random Entertainment Video Generator
Random News and Politics Video Generator
Random Howto and Style Video Generator
Random Education Video Generator
Random Science and Technology Video Generator
Random Nonprofits and Activism Video Generator