HOW TO USE THE STOCHASTIC OSCILLATOR TO TRADE ON YOUR PHONE, AND HOW IT WORKS?
First, you want to make sure you open a chart. (on the Mt4)
- YOU CAN OPEN A CHART BY:
- Selecting the second Icon from the bottom left your phone that looks like a candlestick.
- Alternatively, you can open a chart by selecting the first icon at the bottom corner of your phone that looks (like 2 arrows joined together). You will be shown currency quotes, tap on the currency you want to open, then select “OPEN CHART”
Voila! You should be on a chart now.
- Once on the chart, tap once on your screen (portrait mode) and select the “F” icon from the circle.
- Once on the chart, tap on your screen (horizontal mode) and select the second icon “F” at the top right corner.
Find the stochastic oscillator, select it and tap “DONE” at the top right corner.
HOW IT WORKS?
The stochastic oscillator is used to determine overbought and oversold levels of price. It is a momentum indicator. It is measured by two levels, that is (80) and (20).
Price is considered overbought when your stochastic oscillator crosses above the 80 level and oversold when it crosses below the 20 level.
HOW DO WE TRADE IT?
It is wise to enter sell an overbought trade when the stochastic crosses below the 80 line.
It is also better to enter an oversold trade when stochastic oscillator crosses back above the 20 line.
The Video Below will help you to understand how it works