Today, in this article, I am going to talk about the Stochastic Indicator which is one of the most popular momentum-based indicators you can find this indicator easily on Binomo.
- Stochastic indicator is a momentum indicator that helps traders to identify the upcoming trader and reversals.
- This indicator is very much similar to the RSI indicator but unlike RSI it uses two moving averages which help to get a clean signal and high quality one.
- This indicator uses two moving average line names as %K and % D. Here, %K is a slow line with 14 days period, and % D is a fast line with 3 days period.
- When %K and %D intersect each other it generates a buy and sell signal.
Configure Stochastic Indicator on Binomo
Let me tell you that setting the Stochastic Indicator on Binomo is quite simple by logging in to your Binomo trading account. And once you have logged in you will directly land on the trading dashboard.
Next click on the trading tool icon which is the second last icon on the left side of the dashboard.
Click on the fifth option which is Stochastic, in the list of indicator menu.
Now you can change the Overbought, Oversold, and period as you want to, you can also change the colour if you don’t like it. Finally, click on apply.
Buy with Green Fork
As said above when the %K and % D intersect each other it generates buy and sell signals. For your better understanding change the colour of the % K line as red and % D line as green.
When the green line % D intersects the red line from the bottom and stays above the same is the indicator of the upcoming bullish trend.
Sell with Down Fork
When the green line % D intersects the red line from above and stays below the same is the indicator of the upcoming bearish trend.
Binomo offers trading options with multiple assets to invest in. Binomo is basically a fantastic option for those who are interested in summing up their money and also is a great user-friendly trading platform for both beginners and experienced traders. Well, I have explained to you in a step-by-step method about the Stochastic Indicator on Binomo.