The Stochastic expert advisor is an algorithm that uses overbought and oversold areas of the indicator with the same name; however, it has an original touch.
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.
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.