Abouts :

Stochastic indicator is the brother of RSI ( Relative Strength Index ) indicator. Don’t believe me, read this article.

Now, if you have understood the concept of Relative Strength Index from the above. I bet you will understand the concept of stochastic in minutes. Both these indicators are considered soulmates of each other and are even used by traders together. In this article, I will also teach you how to use Stochastic and RSI together but before let’s discuss the bases of stochastic indicator.

 

About Stochastic Indicator

 

Stochastic Indicator or you can call it Stochastic Oscillator is a trend indicator that was developed by George Lane. This indicator uses two moving average that oscillates between 0 – 100. In most trading platform you will find 20 – 80  as this is the best way to trade with this indicator as per experts.

 

This indicator uses two moving average lines name % K and % D. The % K line is considered the fast line whereas the % %D line is considered the slow one. The intersection of these two lines generates buy and sell signals and traders wait for the same to predict the upcoming bullish or bearish trend.

 

How to set Stochastic Indicator on Quotex

 

To set Stochastic Indicator on Quotex follow the steps below. 

 

 

 

Open Quotex trading account  =>  Log in to your account  =>  Click on indicator  =>  Search for Stochastic Oscillator  =>  Click the name

 

How to Trade?

 

Trading with the above indicator is easy you just need to remember the following rule :-

 

=> When the green line (  % k line ) intersects the red line from the bottom it signal an upcoming bullish trend.

 

 

=> And when the red line ( % D line ) intersects the green line from the top it signal an upcoming bearish trend.

 

Stochastic with RSI ( Relative Strength Index )

 

Trading with the combination of Stochastic and RSI is equally easy. Just remember the following rule :- 

 

=> When you have identified the bullish trend with the Stochastic Indicator.

 

Now you need to confirm the trend with RSI. If RSI line is also below 30 it confirms a strong bullish trend.

 

=> And when you need to identify the bearish trend with the Stochastic Indicator.

 

Now you need to confirm the trend with Relative Strength Index. Next if the RSI line is above the 30 it confirms a strong bearish trend.

 

Join Quotex today and $10000 with upto 50% bonus sign up now.