HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
XM information and reviews
XM
86%
Exness information and reviews
Exness
86%

Oscillating Indicators - Slow Stochastic


The slow stochastic is an oscillating indicator. Developed by George Lane , it can alert you to a shift of investor sentiment from bullish to bearish or vice versa. The slow stochastic can also alert you to when traders are becoming over-extended, which usually results in a trend reversal.

The slow stochastic is usually plotted below the price movement on a chart.

The following three aspects of the slow stochastic are worth your attention:

How the Slow Stochastic is Constructed


The slow stochastic consists of two lines–%K and %D – that oscillate in a range between 0 and 100.

If the closing price is near to the peak of historical closing prices, then the %K line (followed by the %D line) will rise.
If the closing price is near the bottom of the range of historical closing prices, the %K line (followed by the %D line) will move lower (see Figure 7 ).

Slow Stochastic Trading Signal

Entry signal – when %K dips below 80, you can sell knowing that investor sentiment is shifting from being bullish to bearish. When %K rises above 20, you can buy knowing that investor sentiment is shifting from being bearish to bullish.

Exit signal – when %K reverses direction after having risen above 20 or fallen below 80, and crosses over %D, you can sell knowing that investor sentiment is changing direction again.


Strengths of the Slow Stochastic


Weaknesses of the Slow Stochastic

#source


RELATED

Maximize Your Profits in 2022 Through the Best Forex Advisors

Practically all modern Forex expert advisors are built on the foundation of the complex programming language called MetaQuotes versions 4 and 5, which are also used...

Demystifying ECN and STP Trading: A Comprehensive Overview

When setting foot in the trading realm, the first, and perhaps most significant, decision lies in selecting the right broker. The trading platform you choose will serve as your constant ally...

Designing Forex Trading Plans and Rules

Just about every consistently profitable...

What is Bond Market

The bond market, also called the debt market or credit market, is an online marketplace where people trade bonds. These bonds can be issued by governments...

5 ways to get your strategy copied

Copy trading is one of the popular ways that allow professional traders to earn additional income on their trading by offering investors to...

What Markets Hold For 2023 And What Assets To Invest In?

As some people like to say, we are always faced with great opportunities carefully disguised as insurmountable problems. And most of us kept repeating this to ourselves many times in 2022...

Short Selling vs. Puts: An In-depth Analysis of Market-Contrarian Strategies

Navigating the intricate landscape of the stock market can be overwhelming for newcomers. Amidst a sea of financial jargon, you may have come across terms like "short selling" and "puts" without a clear understanding...

US Stock Indices: The Past and the Present

There is a saying in the world of finance: "America will sneeze, but the whole world will catch a cold." But what is the way to determine how serious...

ECN accounts: what are the advantages?

To start trading on Forex, a trader needs to open a trading account, which is now not a problem at all, as numerous forex brokers offer various accounts...

Is It The End Of The Cryptocurrency Bull Run?

A recent selloff across the cryptocurrency market has turned greed to fear, and in a flash nearly a trillion in value was wiped out from the market cap of cryptocurrencies...

Which Citizenship by Investment Programs are Crypto-Friendly?

With the evolution of the digital era, the crypto industry has taken the world by storm. In most countries, digital assets are considered a commodity rather than currency...

Ultimate guide to Dogecoin trading

Dogecoin is a highly popular "meme coin" that has even attracted the likes of Elon Musk to become a fan. Dogecoin is a cryptocurrency that was created in 2013 as a joke...

InvestLite: Bitcoin investment explained

Bitcoin is digital money that does not physically exist. However, there are special registers where information is stored about how many bitcoins someone...

Unlocking the Potential of Asset-Backed Cryptocurrencies: An In-Depth Exploration

Imagine blending age-old investment wisdom with the groundbreaking digital currency sphere. The infusion of the US dollar into blockchain technology, or endowing cryptocurrencies...

Is the US market too expensive during COVID-19?

Global financial media have reported the "extreme cost" of the US stock market in recent days. In theory, this should be followed by an imminent collapse...

What is a Pump-and-Dump Crypto?

A pump-and-dump scheme is a crime in which criminals accumulate a commodity or financial asset over time and artificially inflate the price by spreading...

What Are The Bulls Power And Bears Power Indicators?

To make forex trading as productive as possible and to make trades more accurate, it is recommended to use technical tools, such as indicators. The choice of indicators directly depends...

Can Bitcoin Cash outshine Bitcoin? Theories and predictions

Before Bitcoin Cash (BCH) there was Bitcoin (BTC). Although Bitcoin is still considered by many as the top mainstream digital currency in the world, this reputation...

Coronavirus pandemic: Three scenarios on the global markets

Markets require central banks to take regulatory responses, and after the chaos that occurred last week, the expectation of such measures was quickly taken...

STP Broker: Definition, Characteristics, and Advantages

A Straight Through Processing (STP) broker is a forex brokerage firm that provides wholesale forex services orders to institutional traders. The STP broker was built from the exchange...

Vantage information and reviews
Vantage
85%
FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Just2Trade information and reviews
Just2Trade
76%
FXNovus information and reviews
FXNovus
75%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.