Forex Currency

The stochastic is an oscillator that compares the current price of a currency with the prices of the same currency in a given period if we are in the presence of an upward trend, closing of a currency prices obviously tend to be close to the maximum values of that currency. Conversely, when the trend is downward, closing prices tend to be near the minimum prices of that currency. These oscillators identified a couple of lines, %k and % D, being the last % D, indicating the probable signs of purchase or sale. In General almost all the different houses Broker trading platforms have this indicator, which is reflected in the graphs of each currency pair. There is a point of reference for each line, establishing a kind of channel in which both move. The upper part of the channel displays the value 70 and the bottom shows the 30 value these stochastic advantage is the identification of a divergence with respect to the price of a currency pair series.When the line % D stands above 70 and shape Max increasingly lower while prices are higher and higher lows, is produced what is known as a bearish divergence.When the line %d is below 30 and is increasingly higher lows, while prices are increasingly low maximums, there is what is called a bullish divergence.Signals of purchase or sale can occur when the % K line cut to the % d lineThese single signals will be significant if they occur in the Maxima or minima of the stochastic, always pierced the 70 line (up) or (down) 30. The best results can be obtained in the weekly charts. We recommend using these oscillators as complements of other indicators, since the signals that can give must be confirmed and not be taken in isolation.