⚡️Episode 84: Stochastic Oscillator – Discover reversals before they happen! 🔄📉
Do you want a tool that gives you strong signals for tops and bottoms?
The Stochastic Oscillator is designed to show you when the price has reached its end and is about to reverse! 🎯
📊 What is the Stochastic Indicator?
It is a momentum indicator that measures the current price relative to the highest and lowest price over a period.
It gives you signals about overbought or oversold conditions – so you know when to enter or exit the trade wisely!
💡 How to read it:
✅ Above 80 → Overbought (possible downward reversal)
✅ Below 20 → Oversold (possible upward reversal)
🔁 If the %K line crosses the %D line in overbought areas → a strong signal for reversal
🧠 Best uses:
🔹 Identifying entry and exit points in a sideways market
🔹 Linking it with support and resistance to improve accuracy
🔹 Combining with RSI or MACD for confirmation
⚠️ But be careful:
❌ Do not use it alone in strongly trending markets
❌ It gives too many signals – filtering is necessary
🟢 Is it available on Binance?
Definitely ✅
Search for "Stochastic" in indicators
🛠️ How to add it:
Open the chart
Click [🧠 Indicators]
Type "Stochastic"
Add it – the default settings (14, 3, 3) are very suitable
📌 Advice for professionals:
If you see a bearish crossover in an area above 80 → reduce your positions or prepare for a correction
And if a bullish crossover occurs below 20 with strong support → excellent entry opportunity 💥
🚀 The Stochastic Oscillator gives you an "early warning" for market reversals before they happen
🔥 Next episode: A hidden but powerful indicator… measures momentum in a smart way without noise – Stay tuned