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A Technical Approach To Trend Analysis: Practical Trade Timing for Enhanced Profits
book

A Technical Approach To Trend Analysis: Practical Trade Timing for Enhanced Profits

by Michael C. Thomsett
July 2015
Intermediate to advanced content levelIntermediate to advanced
352 pages
9h 40m
English
Pearson
Content preview from A Technical Approach To Trend Analysis: Practical Trade Timing for Enhanced Profits

Stochastic Oscillator

The stochastic oscillator combines two moving averages calculated with high and low prices as well as closing prices over 14 consecutive sessions. The term stochastic refers to random probability, appropriately named with the use of two separate calculations to create an oscillator. The stochastic oscillator creates value between 0 and 100, with overbought conditions found above 80 and oversold below 20. In this regard, the stochastic oscillator is similar to RSI. It usually is a leading indicator because it is based partly on high and low price levels. Thus, for the analysis of some trends (especially primary trends), it often provides more useful and timely information than RSI.

The difference between RSI and the stochastic ...

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Publisher Resources

ISBN: 9780134190662Purchase book