importance of ""stochastic oscillator'''' in forex trading...

Assalamu Alaikum! Dear seniers and juniers, umeed ha k ap sab kheriat sa hon ga aur forex market man trading ko enjoy ker raha hon ga.

Importance of ""Technical Indicators"" in forex trading:

Forex trading man trader currency pairs aur commodities ki price movements ko smajhna k liye price chart ko read kerta ha, q k price chart patterns man changes, momentum aur price k trend man change ko accuracy k sath identify kerta ha. Technical Indicators ko traders currency pairs aur commodities k price chart place kerta han aur technical indicators currency pairs aur commodities k price chart man price ki movement ko track ker k trader ko accurate""trade entry aur trade exit levels"" ko identify kerta ha. Forex trading man trader currency pair aur commodity ko buy/sell kerna k liye technical indicators per depend kerta ha. Aj man apka sath ""Stochastic Oscillator"" per trading k related apna knowledge share kerta hun.
History of Stochastic Oscillator:

Stochastic Oscillator ko George Lane in 1950s man develope kia tha,
Stochastic Oscillator:

Stochastic Oscillator ak momentum indicator ha jo currency pairs aur commodities ki specific numbers of timeperiod ki closing price sa price ka momentum calculate kerta ha. Stochastic Oscillator ki ""sensitivity"" ko reduce kerna k liye timeperiods k number ko adjust ker ya result k moving average le ker kia ja sakta ha. Stochastic Oscillator apna result ak graph per deta ha jis man ""0 to 100"" levels hota han.

Working of Stochastic Oscillator:

Stochastic Oscillator results ko graph per two lines ki movement sa display kerta ha, jis man ak line oscillator ki specific timeperiod k liye actual value ko show kerti ha aur dosri line 3 days ki ""Simple Moving Average"" line hoti ha. Jab dono lines ak dosra k sath intersect kerti han to ye ""Reversal trend Trade Signal"" produce kerta ha.

Trading with ""Stochastic Oscillator""
Overbought and Oversold Condition by Stochastic Oscillator:

Jab Stochastic Oscillator ki lines 80 k level sa above ho to iska mtlab ha k particular currency pair aur commodity ki price kafi zayada buy ho gai ha ab prices mazeed oper jana k chance bhot kam ha. Market ki is condition ko ""Overbought"" condition kehta han. Is man trader ko buy ki trade opportunity ko avoid ker k sirf sell ki trade opportunity ko avail kerna chaheye.
Is condition jab trader ko koi trend reversal candlestick pattern mila to is per sell ki trade active kerni chaheye.
Jab Stochastic Oscillator ki lines 20 k level sa below ho to iska mtlab ha k particular currency pair aur commodity ki price kafi zayada sell ho gai ha ab prices mazeed nicha jana k chance bhot kam ha. Market ki is condition ko ""Oversold"" condition kehta han. Is man trader ko sell ki trade opportunity ko avoid ker k sirf buy ki trade opportunity ko avail kerna chaheye.

Market ki is condition man ager trader ko koi trend reversal candlestick pattern mila to is per buy ki trade active ker deni chaheye.
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Re: Importance of ""Stochastic Oscillator'''' in forex trading...

Stochastic Oscillator

Dear friends stochastic oscillator momentum indicator hay jo support and resistance levels ko find karny key ley be use kia ja sakta hay, is indicator ko time period key mutabik istimaal kr ky price range Kay bary me malomaat ko hasil karny ky leay bhi use kia ja skta hay.



Stochastic Oscillator Explanation

Dear friends stochtastic oscillator ik technical indicator hai jo trader ko help karta hai k market ka trend khatam hony wala hai. Ye es theory par work karta hai ik ye k uptrend ma price ya to closing price k equal hoti hai ya above hoti hai. Downtrend ma price ya to closing price k equal hoti hai ya es sy below hoti hai. Ye both line macd lines ki tarha hoti hain or ik line dosri line sy faster hoti hai. Trading using stochastic indicator. Ye technical indicator market ki over bought or over sold state k bary ma batata hai. Eski value 0 or hundred k bech ma move karti hai. Es ki value jb 80 sy above ho jati hai to eska matalb hota hai k market over bought ho gae hai or jb eski value 20 sy below ho jati hai to eska matlab hai k market oversold ho chuki hai. So jb market oversold ho jae to hamy buy ki trade open karni chahe or jb market over bought ho jae to eska matlab hai trader ko ab sell ki trade open karni chahe.



Apply on Chart

Stochastic Oscillator 2 lines par mushtamil hota hai jinho ny trend lines ko sandwich ki trha cover Kia hota Hy usko samjhny Kay leay meny neechy picture attach ki hy. Ye indicator khud ko %k sy represent karta hai or ik line jo 3 day ki simple moving average ko reflecr kartu hai usko %d sy show kiya jata hai. Jb ye lines interest karti hain to eska matlab hota hai k trend changw hony wala hai. En lines par he stochtastic indicator ki value depend karti hai. But line k ik bar close ho jana confirm ni karta k ab trend change gurantee sy ho ga balky kahe par asa hota ha k intersection k bad b line phr same direction ma chal parti hai or market ka trend change ni hota. Market apny previous trend ko he continue karti rehti hai. So blinldy over bought or over sold conditions par believe ni karna chahe balky apny experience k sath he es indicator ko best results k lae use karna chahe.



Resemblance of Stochastic with CCI

Dear friends CCI (Commodity Channel Index) aur stochastic oscillator in dono me itna zayda diffrence nahi hai agar ap ny observe Kia ho to Kuch traders is ko period chnage kar k aik hi window mai lagaty hai jis se cross over wali strategy ban jati hai aor jab bhi ais mai short time period wala long period waly ko cross karta hai to aus mai trade lagaty hai ais mai ap ko bahot hi acha result milta hai ais mai time frame wala bhi bara seen hota hai jaisy agar ap ne ais mai H4 mai koi trade dondh li hai magar aus chart par jab ap time frame change karo gay to aus mai ye trade ni ban rhe hoti hai ais liay agar ap ne ais mai trade karni ho to ais mai risk aik hisab se ley ye jitny bhi indicators hoty hai ain mai ap ko confrom trade ni mil rahe hoti hai ais liay jab bhi ain mai trade lagani ho to ap ais mai stop loss zaror lagye kun k jab ap ais mai stop loss lagao gay to ap ko tension ni ho gi k market ap ko bahot zayda loss dey gi.

Re: Importance of ""Stochastic Oscillator'''' in forex trading...

AOA

Introduction
Stochastic oscillator ik popular indicator hai jb mementum ko asses or trend ki strength ko measure ki bat ati hai to Meta trading 4 plat form ma stoch indicator generally present hota hai or ye understand karny ma easy hota hai But es par over relay karna or market ko deeply understand na kary trader ko frustration ma mubtela kar deta hai


Stochastic oscillator
Stochastic indicator ik momentum oscillator hai jo market ki over bought or over sold state ko indicate karta hai jb ham forex price ko kisi khas period ma observe karty hain Trader es signal par trade ko open karty hain but ik bar wo he bat ati hai k trader ko indicator par zayada trust ni karna chahe or en k badlay apny experience ko weightage deni chahe


Working of stochastic oscillator
Stochastic oscillator ma 2moving line hoti hai jo horizontal lines k bech ma oscillate karti hain Ik solid k line hoti hai jis ko %k kaha jata hai or es ko specifice formula k tehat find kiya jata hai Price us time par over bought ko show karti hai jb 2 moving line horizontal line ko upper side sy cross karti hain Price us time par over sold show hoti hai jb ye line horizontal lines ko below sy cross karti hain Overbought us time par show hota hai jb price top 80 percent par fit hoti hai Es oscillator ka defined period 14 hota hai Ese he tarha price us time over sold show hoti hai jb ye 20 percent par fit ho jata hai


Pros and corns of stochastic oscillator
Es ka ik advantage ye hai k trader ko ye clear cut information deta hai k kb market ma enter or kb exit hona hai But agr user es ko correctly use ni kary ga to usko false signal b mel sakty hain Es oscillator ko use karny sy trader ko frequently signal mel sakty hain but trader ko ye pata ni hota k market ki over bought or over sold state ketny time tak rahy gi


Trusting stochastic oscillator
Trader ko es oscillator ko zayada importance ni deni chahe or apny experience ko zayada sy zayada utilize karna chahe Agr trader kisi b indicator ko blindly use karyn gy to es ka result alarming ho ga Or trader ka account he wash ho sakta hai