Stochastic is just a tool that helps you see,
👉 Is the price too high right now?
👉 Or is the price too low?
It gives you an idea if the market is overbought or oversold.
But it doesn’t tell the future, okay? It’s a hint not magic.
How It Works
There are 2 lines,
%K Line = Fast line
%D Line = Slow line
Both lines move between 0 to 100.
Above 80 = Overbought, Might go down.
Below 20 = Oversold, Might go up.
But please… don't blindly buy when it hits 20. It can go to 10, 5, or even 1.
Example
One time, I saw Stochastic at 15.
I thought: Oversold! Time to buy!
I bought.
The chart said - Baby, I'm not coming your house Today otherwise you will make me *****
It dropped more.
I stared at the screen like a confused goat.
So what to do? Use Stochastic + Support level + Confirmation.
Not just looks cute.
Some Questions
Q: Can I use it alone?
A: Only if you enjoy pain. Use it with price action or support/resistance.
Q: Which time frame should I use?
A: Use the one that fits your style.
Scalping = 5m or 15m
Swing = 1H or 4H
Q: When is it really useful?
A: When price is at a strong support AND Stochastic is oversold AND lines cross — that’s a good combo.
Another Example
Stochastic is like food delivery.
You’re hungry (oversold), so you order.
But it still takes time to arrive (price takes time to go up).
Don’t eat the phone while waiting.
Be patient.
Personal Opinion
Don’t rush in just because it says oversold
Use other tools with it
Don’t use it in strong trends — it works better when market is sideways
Always set a stop loss, even if Stochastic hugs you
Stochastic won’t make you rich overnight.
But it can help you stop buying at the top like a moon-chaser.
And always remember
Leverage doesn’t kill.
If you use more than 500x It's okay, But if our trade size is only $100 to Buy or Sell, Stay maintain on same amount with 500x.
As like we made 5$ with 20x so total $100. So $0.2 with 500x It's okay. Be Smart to make money.
But bad decisions Kill you.
