Stochastic Oscillator
Stochastic Oscillator (Sthocastic in English) is a statistical variable
is built through the position Quote a
compared to its maximum and its minimum within a specified period.
This variable moves within the closed interval [0,1], ie, between zero and 100 percent.
Through graphic examination, the instrument of technical analysis
market, delivery to buy or sell signals.
This
Statistical
can be expressed formally as follows:
Where: 
S: The stochastic. VC: The Value of Closing the final session. Max and Min: The maximum and minimum, respectively, of the contribution within the period under review.
The periods are usually evaluated include 1 week or a month, specifically 5 sessions or 20, respectively.
Below is a graphic example, absolutely necessary for full understanding of this tool.
Signs Signs that indicate the analyst that studied Action must be purchased or sell, are seen mainly when the line Stochastic oscillator (S) cuts to its moving average (DS). Then, we say that if short in ascending S ΔS is given a buy signal. And if S remains above its moving average, the signal remains. The graph shows this situation in the blue circle. 
variable to work with this horizontal line is drawn at 50%, commonly called "neutral zone." You can draw two additional lines parallel to the first. One in 80% and another 20%. These ranges are by default in many web pages of technical analysis, although generally they are configured.
Then the overbought zone would be at the top of the chart, in the range 100% and 80%. In contrast, the oversold area would be in the bottom of this, specifically in the range 0% to 20%.
Mendez Nanyoly
Signs Signs that indicate the analyst that studied Action must be purchased or sell, are seen mainly when the line Stochastic oscillator (S) cuts to its moving average (DS). Then, we say that if short in ascending S ΔS is given a buy signal. And if S remains above its moving average, the signal remains. The graph shows this situation in the blue circle.
Conversely, if S cuts in descending ΔS sell signal is given, and while S remains below the trend will remain for sale. The case notes in the chart on the yellow circle.
Areas Within this figure there are two areas very relevant, generally known as: Area on buying and oversold.
Then the overbought zone would be at the top of the chart, in the range 100% and 80%. In contrast, the oversold area would be in the bottom of this, specifically in the range 0% to 20%.
Solid-State Electronics Section 1
0 comments:
Post a Comment