INDICATORS: What Are They Saying? Which ones to choose? How to use?-Crypto Commons

 Crypto Commons Trading indicators have long proved to be useful tools in the work of a trader. In this article, we will look at seven popular oscillator indicators that help determine the current state of the market and give signals for opening and closing positions.

Stochastic indicator

 Stochastic indicator

The Stochastic Oscillator indicator was created by the famous trader George Lane. He noted a certain cyclicity in the behavior of the price: moving from one level to another, it periodically falls into a state of overbought, then oversold. Stochastic shows the ability of buyers and sellers to set the closing price at the highs/lows reached.


Stochastic is a normalized oscillator, built in a separate window under the price chart, consists of two lines: %K - fast and %D - slow. Values ​​vary from 0% to 100%, signal lines are drawn at the levels of 20% and 80%, which highlight zones of oversold (from 0% to 20%) and overbought (from 80% to 100%). These zones are used to search for signals to buy or sell a financial instrument.