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Stochastic Oscillator Complete Trading Guide
The Stochastic Oscillator is a momentum indicator that is designed to give you an objective measure of the momentum in your trading instrument.
It’s bounded by the numbers 0 and 100 and will oscillate between those two areas.
It will show you the...
Step 4: Take Action – Take Your Trend Reversal Trade
So let’s recap:
1: We’ve found a trend.
2 :We’ve decided what indicator or chart pattern we’re going to use to tell us that the trend might be coming to an end.
3: Our specific Trend Reversal Event (that we’ve decided upon in advance) has...
Step 3: The Trend Reversal Event
So now we’ve got a trend, and we’ve got an indicator or chart pattern telling us that a trend reversal might be on the cards.
Now we are onto stage 3 of the 5 stage process. We’re getting down to business now.
So what’s a “trend reversal event”?
A trend...
Step 2: Decide what trend reversal indicator you are you going to use
So now should have identified an instrument that looks like it’s trending.
Next it’s time to take a closer look – we need to add some context to that blank chart.
And that means adding some indicators, or looking for some...
Step 1: Find a trend to reverse
You’d be shocked at the number of people who jump straight into find finding trend reversals before actually finding a trend in the first place.
Sounds stupid, but us forex traders are fond of jumping the gun on some of these things, aren’t we? Identifying trend...
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