Explain what is stochastic oscillator in forex trading

Explain what is stochastic oscillator in forex trading

EXPLAIN WHAT IS STOCHASTIC OSCILLATOR IN FOREX TRADING Stochastic Oscillator lagbhag 1950s mein George C. Lane ne develop kiya tha. Iska istemal overbought aur oversold levels, trend reversals aur entry/exit points ke tayyar hone ka pata lagane ke liye hota hai.Forex trading mn Stochastic Oscillator ek technical analysis tool hai jo traders istemal karte hain market trends aur price momentum ko samajhne ke liye. Yeh indicator momentum ki strength aur weakness ko measure karne mein madad karta hai. STOCHASTIC OSCILLATOR FORMATION Stochastic Oscillator price ki comparison karta hai current trading range ke saath. Ismein do lines hoti hain - %K line aur %D line. %K line jo primary line hoti hai, wo price ko current trading range ke saath compare karti hai aur momentum ko display karti hai. %D line jo ki smoothing line hoti hai, %K line ki moving average hoti hai aur isse trend ko confirm karna aasan hota hai. STOCHASTIC OSCILLATOR TREND ZONE Stochastic Oscillator 0 se 100 ke beech ek range mein hota hai. Iske readings overbought (80 se upar) aur oversold (20 se neeche) levels ko indicate karte hain. Jab %K line %D line ko upar se cross kare aur overbought zone se neeche aaye, to ye ek sell signal ho sakta hai. Aur jab %K line %D line ko neeche se cross kare aur oversold zone se upar jaye, to ye ek buy signal ho sakta hai. Overbought level jab market ki price bahut jyada upar jati hai aur bahut tezi se badhti hai, tab samjha jata hai. STOCHASTIC OSCILLATOR TECHNICAL STRATEGIES Stochastic Oscillator ko istemal karne ke liye traders price ki direction ke saath-saath momentum aur trend ko samajhne ki koshish karte hain. Agar %K line %D line ko cross kare aur overbought/oversold level ko touch kare, to ye ek potential entry/exit point ban sakta hai. Iske alawa, divergence, bullish/bearish crossovers, aur chart patterns ke saath Stochastic Oscillator ka istemal kiya ja sakta hai.Yeh indicate karta hai ki market overvalued ho sakti hai aur price ki correction ho sakti hai. Oversold level jab market ki price bahut jyada neeche jati hai aur bahut tezi se ghati hai, tab samjha jata hai. Yeh indicate karta hai ki market undervalued ho sakti hai aur price ki reversal ho sakti hai.