By
fxKnight |
Beginners | Jan 29, 2009 12:00AM GMT |
Oscillating indicators get their name due to their tendency to oscillate within a
range of values. They can signal when price is at extreme levels and due for a
reversal.
Stochastics
Stochastics consist of a fast line and a slow line, and oscillate between 0 and
100. Levels above 80 are said to be over-bought and levels below 20 are
referred to as over-sold. When the red line crosses above the blue we know that
the bulls are overpowering the bears. When the red line crosses below the blue,
on the other hand, we know that the bears are beginning to overpower the bulls.
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