how to trade with stochastic oscillator in forex trading?

Assalamu Alaikum! Dear seniers and juniers, umeed ha k ap sab kheriat sa hon ga aur forex market sa daily basis per ak acha gain le raha hon ga. Dear traders forex trading ak risky business ha aur is man 90% traders loss kerta han. Is liye forex trading man successful hona k liye zarori ha k trader forex ko acha sa seekh ker karen.

Importance of Indicators:

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. Indicators ko use kerna k liye pehla trader indicator ko currency pairs aur commodities k price chart man place kerta ha. Indicators currency pairs aur commodities k price chart man market price ki movement ko track kerna k liye use hona wala most important technical tool ha. Is liye forex trading man trader kisi b currency pair ya commodity ko buy/sell kerna k liye Indicators per depend kerta ha.

Stochastic Oscillator:

Stochastic Oscillator ak momentum indicator ha jo particular closing price ko certain period k prices ko compare ker k batata ha. Ye indicator currency pairs aur commodities k price chart man market price k ""Overbought aur Oversold"" ka batata ha, jiska liye stochastic oscillator ki two lines ak graph per 0 sa le ker 100 tak k levels k dermiyan move ker k batati ha. Is indicator ko 1950s man George Lane develope kia gya tha, jo closing price aur predetermined period of time ki price k dermiyan relation batata ha.

Key Points:

1. Stochastic Oscillator ak high accuracy indicator ha.

2. Stochastic Oscillator trader ko currency pairs aur commodities k price chart man accurate trade entry aur trade exit levels ko momentum ki base per identify ker k batata ha.

3. Stochastic Oscillator ki two lines jab 20 k level sa low ho to isko Oversold consider kiya jata ha.

4. Stochastic Oscillator ki two lines jab 80 k levels sa above hon to isko Overbought consider kia jata ha.

5. Stochastic Oscillator ki confirmation k liye trader ko baqi trading tools ko lazmi use kerna chaheye.

Formula of Stochastic Oscillator:

Line-1:

%K = (C - L14/H14 - L14) × 100
C = Most Recent Closing Price.
L14 = Lowest Price of last 14 periods.
H14 = Highest Price of last 14 periods.

%K = Current Value of Stochastic Oscillator.

Line-2:

%D = 100(H3/L3)

H3 = Highest Price of last Three Trading Session.

L3 = Lowest Price of last Three Trading Session.

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Trading with Stochastic Oscillator:

Stochastic Oscillator per trading k liye trader ko Stochastic Oscillator ki two lines %D aur %K k cross ka wait kerna chaheye. Jab %D 20 level sa below ho aur %K line %D line ko cross above kara to is per trader ko ""buy ki trade"" active kerni chaheye. Stoploss ko price k last swing low per place kerna chaheye aur Take Profit ko next resistance levels per Tp-1, Tp-2 aur Tp-3 ker k place karen.

Jab %D 80 level sa above ho aur %K line %D line ko cross below kara to is per trader ko ""sell ki trade"" active kerni chaheye. Stoploss ko price k last swing high per place kerna chaheye aur Take Profit ko next support levels per Tp-1, Tp-2 aur Tp-3 ker k place karen.
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Re: How to trade with Stochastic Oscillator in forex trading?

Stochastic Oscillator

Introduction

Stochastic oscillator aik aham tool hai, jis ko technical analysis me leading indicator k tawar par istemal kia jata hai. Ye qeematon k overbought aur over-sold zone, signals divergences aur short term trend ka long term trend k sath comparison k bare me tareeqay kar faraham karta hai. Stochastic indicator aik makhsos waqat k dowran latest closing qeemat ko price action k total range k sath comparison karta hai.
Stochastic indicator ki value 0 aur 100 k darmeyan hoti hai. Indicator k high-stochastic k matlab hai k muntakhib waqat k dowran qeemat k upper range k qareeb hai. Jab k low-stochastic me qeemat peroid k low range k qareeb hoti hai. Jab bhi qeematen bullish jati hai to stochastic oscillator k lines bhi upward rang k qareeb hai, aur qeematon k lower jane par lines lower range k qareeb hoti jati hai.

Stochastic Oscillator Calculation

Stochastics Oscillator me do lines %K aur %D lines par mushtamil hota hai. %K line ko "raw stochastic" ya fast %K, bhi kaha jata hai, jo k bohut ziada sensitive hpti hai. %K line ka formula kuch is tarah se banega;

[B](Close) - (Low of N) / (High of N) - (Low of N) × 100 = %K

Close = current close
Low of N = low of the range during the period used
High of N = high of the range during the period used[/B]

Mandar-bala formula me "100" value ko percentage me badal deta hai. Agar aaj ki close price period k high k barbar hai to fast %K "100" hoga. Yahan par period se murad koi bhi timeframe jaise Day, week yahan tak k intraday (jaise pe ghanta) bhi ho sakti hai. 19,14 aur 21 aam peroid ya ziada istemal hone wale periods hen.
Fast %K line bohut zyada volitile hoti hai, is waja se is ko smooth karne k leye "%K" k value k last three moving averages ko hi leya jata hai, in teen %K k moving averages ko Slow %K kaha jata hai. Ziada tar traders Slow %K line ko Fast %K line par tarjeeh dete hen.
Slow %K k moving average ko mazeed smooth banane k leye is ka 3-day moving average leya jata hai, jis ko %D line kaha jata hai. Yani %D line further moving average ka aik moving average hota hai. %K line aur %D line me faraq maloom karne k leye in dono lines ko baghawar dekhne k baad, jo line long term trend ki information de wo %D line hogi, jab k short term trend wali line %K ki moving average hogi.

Trading on Stochastic Indicator

Ziada tar traders stochastic indicator ko overbought aur over-sold zone me banne wale divergence k trading k leye istemal karte hen. Lekin stochastic oscillator ko dosre tareeqon k mutabiq bhi trading k keye istemal kia ja sakta hai.
Kuch analyst k mutabiq jab bhi %K line %D ko nechay se cross karti hai, to ye sell signal hoga, aur agar %K line %D line se upper chali jati hai, to ye buy ka signal hoga. Ye trading strategy same do moving averages k cross over technique jaisa hi hai.
Aik dosra tareeqay kar ye bhi hai k jab bhi %D line 25% ya us se nechay jaye aur %K line bhi %D se upper ho to ye buy ka signal hoga. Lekin us k bar-aks agar %D line 75% ya us se ziada ho aur %K line %D line se nechay ho to ye sell ka signal hoga.

Re: How to trade with Stochastic Oscillator in forex trading?

trading sochstak indcator is very importan is very good and but oscillator ko dosre tareeqon k mutabiq bhi trading k keye istemal kia ja sakta hai.
Kuch analyst k mutabiq jab bhi %K line %D ko nechay se cross karti hai, to ye sell signal hoga, aur agar %K line %D line se upper chali jati hai, to ye buy ka signal hoga.
oscillator ko tareeqon hasl akr ka trak bhot acha hot ha ap ko sochstak indcator ko astam kar sagta ha.