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| | {{Glossary|Like RSI, stochastics is a momentum indicator that indicates overbought/oversold levels.}} | | {{Glossary|Like RSI, stochastics is a momentum indicator that indicates overbought/oversold levels.}} |
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| - | High levels (above 70 or 80) are indications to enter short orders; low levels (below 30 or 20) are indications to buy. Like all oscillators, stochastics work best A momentum indicator that measures the price of a security relative to its high/low range over a set period of time. The indicator fluctuates between 0 and 100, with readings below 20 considered overbought (bearish) and readings above 80 considered oversold (bullish). | + | High levels (above 70 or 80) are indications to enter short orders; low levels (below 30 or 20) are indications to buy. Like all oscillators, stochastics work best as a momentum indicator that measures the price of a security relative to its high/low range over a set period of time. The indicator fluctuates between 0 and 100, with readings below 20 considered overbought (bearish) and readings above 80 considered oversold (bullish). |
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| | {{Stub}} | | {{Stub}} |
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| | [[Category:Terms]] | | [[Category:Terms]] |
Revision as of 11:26, 14 September 2005
| Definition:
Like RSI, stochastics is a momentum indicator that indicates overbought/oversold levels.
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High levels (above 70 or 80) are indications to enter short orders; low levels (below 30 or 20) are indications to buy. Like all oscillators, stochastics work best as a momentum indicator that measures the price of a security relative to its high/low range over a set period of time. The indicator fluctuates between 0 and 100, with readings below 20 considered overbought (bearish) and readings above 80 considered oversold (bullish).
