Technical Analysis Techniques - Stochastic Indicators
- 2023/2/26 3:14:29
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Stochastic forextradingmarketdicators were invented by Dr. George Lane, is a set of technical analysis tools commonly used in the European forex trading session times American futures markets, due to the risky volatility of futures, the need for more short-term, sensitive indicator tools, so the technical analysis of short-term and medium-term investment is also more applicable, stochastic indicators integrated the concept of momentum, strength and weakness To calculate the forextradingtime of stochastic indicator, we must first find the highest price, lowest price and the closing price of the ninth day in the last nine days, and then use these three figures to calculate the immature stochastic value (RSV) of the ninth day (the closing price of the ninth day - the lowest price in the last nine days) RSV = ━━━━━━━━━━━━━━━━━━ 100 (highest price in the last 9 days - lowest price in the last 9 days) After calculating the RSV, the cashback forex and D values are calculated according to the smoothing method of moving averages K value for the day = 2/3 of the previous days K value + 1/3 of the RSV D value for the day = 2/3 of the previous days D value + 1/3 of the current days K value If the previous days K and D values are not available, they can be substituted with 50 respectively. The stochastic concept of the KD line is much more advanced than the moving average in practical terms. In the field of technical analysis, it can be divided into two areas: graphical analysis and moving average theory. Some experts recognize these shortcomings and have developed more advanced technical theories to bring the application of moving averages into play. line (fast average) and D line (slow average) to rise, such as the rise began to slow, it will react to the K value and D value, so that the K value fell below the D value, then the short and medium-term downtrend established KD line is essentially a random fluctuations in the concept, for mastering the short and medium-term market trend is very correct, so it can be said to be a very practical tool 1. 2. When the D value is greater than the K value, it shows that the current trend is downward, so the K line downward below the D line on the graph is a sell signal. 3.