Today, we will speak about another trading strategy meant for minute charts, with a potential profit of 10-15 points per trade. The characteristic feature of this strategy is the use of the ADX indicator on small timeframes: normally, it is used on daily charts, as its author advised.
Tag: stochastic oscillator
In this review, we will discuss trading overbought and oversold areas. A trader may use special indicators that analyze the dynamics of price changes and show the overbought and oversold areas.
In this article, we will discuss several trading strategies using the Stochastic along with other indicators and single out their advantages and drawbacks.
Stochastic Oscillator chart is drawn in a separate window under the price chart and consists of two lines: %K, quick one, and %D, slow one. Its values vary from 0% to 100%; at the levels of 20% and 80% signal lines, defining the oversold (0-20%) and overbought (80-100%) areas, are drawn.