Before completely implementing the Stochastic, take the time to put it on a demo account and try it. Adjust the settings and try to locate which setting fit your style best. You may find out that this is not the best for you, or that it actually complements your style well. Do not lose money as a learning experience and take the time to familiarize yourself with this awesome and widely known tool.
Stochastic
 | By Nathan Young | Macroaxis Story |
The Stochastic Oscillator is one of many different momentum indicators out there. This one specifically compares the closing price of an equity over a predetermined range of time. If you plot the tool, you will see that it operates on a 0 to 100 scale, with anything nearing 100 becoming overbought and anything nearing 0 being oversold. As with any indicator, these are not 100% accurate, but certainly get you in the ballpark when searching for buying and selling opportunities. This particular tool was developed by a person by the name of George Lane in the late 1950’s.
Updated over a year ago View currently updated edicational stories | Filter Stochastic |
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Rifka Kats
When implementing the Stochastic, it is important to find the right time frame you want to have the indicator use to either smooth or vary the movement to fit your trading or investing style. It is typically said that anything 20 or less is becoming over sold and should be looked at for a possible trend reversal, and anything over 80 is over bought and should be looked at as another possible trend reversal. This particular tool only utilizes price and time to plot the data and does not take into account volume or flow of money.
Certainly using the Stochastic alone is not enough to give you a solid answer. Some complimentary data would be Standard Deviation, because this gives you a rough probability of an event happening within a defined data set. Another data point to use if you trade is the Value Area, which is based on the previous days trading information. These combined can give you that extra boost you may have been looking for in your trading or investing routine.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Please refer to our Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to editors@macroaxis.comDid you try this?
Run Crypto Correlations Now
Crypto CorrelationsUse cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |
| All Next | Launch Module |
Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any private could be tightly coupled with the direction of predictive economic indicators such as signals in estimate. You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Consideration for investing
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |