STOCH

Stochastic

STOCH compares where a security's price closed relative to its price range over a given time period.

STOCH and STOCHF are very similar except that STOCH is less volatile than STOCHF, this is achieved by applying a short term moving average on STOCHF to get STOCH.

INTERPRETATION:

  • Buy when either %K or %D falls below 20 and then rises above 20. Sell when either of them rises above 80 and then falls below 80.
  • Buy when the %K line rises above the %D line and sell when the %K line falls below the %D line.
  • Look for divergences. Divergence in STOCH and price may anticipate change in price trend.

Related Indicators: STOCHF.

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