HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
Vantage information and reviews
Vantage
85%
XM information and reviews
XM
82%

Oscillating Indicators - Slow Stochastic


The slow stochastic is an oscillating indicator. Developed by George Lane , it can alert you to a shift of investor sentiment from bullish to bearish or vice versa. The slow stochastic can also alert you to when traders are becoming over-extended, which usually results in a trend reversal.

The slow stochastic is usually plotted below the price movement on a chart.

The following three aspects of the slow stochastic are worth your attention:

How the Slow Stochastic is Constructed


The slow stochastic consists of two lines–%K and %D – that oscillate in a range between 0 and 100.

If the closing price is near to the peak of historical closing prices, then the %K line (followed by the %D line) will rise.
If the closing price is near the bottom of the range of historical closing prices, the %K line (followed by the %D line) will move lower (see Figure 7 ).

Slow Stochastic Trading Signal

Entry signal – when %K dips below 80, you can sell knowing that investor sentiment is shifting from being bullish to bearish. When %K rises above 20, you can buy knowing that investor sentiment is shifting from being bearish to bullish.

Exit signal – when %K reverses direction after having risen above 20 or fallen below 80, and crosses over %D, you can sell knowing that investor sentiment is changing direction again.


Strengths of the Slow Stochastic


Weaknesses of the Slow Stochastic

#source


RELATED

Mobile Trading: Revolutionizing Financial Markets

The advent of mobile trading has transformed the financial landscape, offering unparalleled flexibility and accessibility to traders worldwide. This comprehensive guide delves into the intricacies...

What is an NFT?

It is fair to say that 2021 was the year of NFT, Ethereum’s enfant terrible. Non-fungible tokens invaded the world of digital currencies to become...

A Guide to Ethereum Trading

Ethereum is one of the most promising technology in today's fast-paced world. Since its creation in 2015, its growth seems not to slow down anytime soon...

APR vs. APY in Crypto: A Comprehensive Guide

Cryptocurrency investments have become increasingly popular in recent years, attracting investors from all walks of life. As the crypto market continues to grow and evolve...

How to Identify a Suitable Broker for Trading Crypto

Cryptocurrencies have become attractive both as trading and investment instruments. The uniqueness of this market sector puts additional requirements on a broker that...

Is Bitcoin A Good Investment?

Bitcoin is a one-of-a-kind financial asset that has been compared to gold and is said to have the potential to unseat the US dollar as the global reserve currency in the future...

What Is Shiba Inu Coin?

Shiba Inu coin is a “meme coin” that caught the attention of crypto enthusiasts over the last few years. The coin is one of the largest of the "dog coins" and a direct competitor to Dogecoin...

How "Stable" Really Are Stablecoins?

Over the past month, some major stablecoins completely lost their peg with the U.S. Dollar, raising concerns amongst investors about their safety. Stablecoins are designed...

Can you make money with crypto arbitrage?

Crypto arbitrage is the practice of and methodology behind taking advantage of price fluctuations in the price of various cryptocurrencies, such as Bitcoin or Ethereum. These variances...

Trading GBP vs Euro Characteristics

After almost two decades of forex history, the GBP vs Euro pair is today one of the important major currency pairs in online trading. Both the Euro...

What Factors Affect the Price of Cryptocurrencies?

Do you want to trade cryptocurrencies but need to know when it is better to sell or buy them? What happens to the prices in the crypto market, and what should you consider?

Is It The End Of The Cryptocurrency Bull Run?

A recent selloff across the cryptocurrency market has turned greed to fear, and in a flash nearly a trillion in value was wiped out from the market cap of cryptocurrencies...

Everything you Wanted to Know about Dogecoin

Sometimes, the best things in life start as a joke, and Dogecoin is not an exception. Initially created as a joke in December 2013, based on the popular Doge meme of a Shiba Inu dog...

Short Selling vs. Puts: An In-depth Analysis of Market-Contrarian Strategies

Navigating the intricate landscape of the stock market can be overwhelming for newcomers. Amidst a sea of financial jargon, you may have come across terms like "short selling" and "puts" without a clear understanding...

Copy Trading Strategies: How to Start Successful Copy Trading

To be a successful copy trader, you need to understand quite a bit of nuance and things to ensure that it is the profitable venture you are hoping for...

Living Through Economic Crisis: Top Hedging Instruments in 2022

There has been absolutely no doubt that the post-pandemic global economy will be recovering at a turtle pace. But instead of a gradual recovery, the economy has plunged into a rapidly...

How to trade stocks

If you are unfamiliar with the stock market, then this trader's guide will assist you in understanding this market and how you can easily trade stocks...

What is a Decentralised Autonomous Organisation (DAO)?

DAO is the new buzzword in the array of crypto offerings aiming to disrupt the traditional models of collaboration and organisation. A DAO can be used to create...

Understanding Cryptocurrency Market Capitalization

If you have been around cryptocurrencies like Bitcoin and Ethereum for some time, chances are you have heard the term market cap discussed. It is something that helps...

Chainlink: Is It on Track for a Bull Rally?

If you have recently watched the crypto charts, you can see the growing popularity of many coins, including Chainlink (LINK). And while so many assets are on the bull run...

FP Markets information and reviews
FP Markets
81%
RoboForex information and reviews
RoboForex
77%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Exness information and reviews
Exness
76%
Just2Trade information and reviews
Just2Trade
76%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.