Stochastic Indicator Key Points
- A Stochastic indicator is a momentum indicator that helps traders to identify the upcoming trends and reversals.
- This indicator is very much similar to the RSI indicator but unlike RSI it uses two moving averages which help traders to filter out a clean signal and high quality one.
- This indicator uses two moving average line names %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.
How to Configure Stochastic Indicator on Binomo
Let me tell you that setting the Stochastic Indicator on Binomo is quite simple and easy you can do it 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.
You can also change the Overbought and Oversold levels, and period as you desire. You can also change the color of the indicator if you don’t like it. once you are done 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 color of the % K line to red and the % D line to green.
When the green line % D intersects the red line %K near line 30 from the bottom and stays above the same It is an indicator of an upcoming bullish trend.
Sell with Down Fork
Similarly, When the green line % D intersects the red line %K from above and stays below the same is an indication of an 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. Stochastic Indicator is a great indicator and can give you excellent results. I hope you have understood the concept of the indicator and you can make most out of it.