Stochastics - another strategy work at Forex

Stochastics (indicator value of the security, to detect speculation on it) belongs to the most popular indicators in the online trading currency market Forex.Unfortunately, many traders do not know how to use it.

The indicator was developed by George Lane in the late 50e.Stochastics consists of 2 lines:

% D - the main line, usually in bold print;

% K - K moving average, is often depicted by a dotted line.

There are 3 types of indicators:

1. Full

2. Fast;

3. Slow stochastics.

Slow stochastics - this is just a uniform version fast stochastics. A full stochastics further delayed the slow version.

Interpretation. Buy currency when% K falls below resold level (below 20) and rises above the same level.

Sell when% K rises above the overbought level (above 80) and drops below the same level.

However, this interpretation is used by the majority of traders, acting only when the market there are no trends.

When the price changes within the market hall and trend indicators are not effective, we need an oscillator. When the trend in the market will go up, then the signals that lead to success, we must go in one direction with the trend. On the other hand, if the prevailing trend in the market downturn, you must sell the currency, as well as your risks at the same time will be minimal.