The cTrader stochastic oscillator is a momentum indicator that compares the distinct closing price of an asset to a range of its prices over a defined period of time. The sensitivity of the oscillator to market movements is reducible by adjusting that time period or by taking a moving average of the result.
Stochastics measures the momentum of price. If you imagine a rocket going high up in the sky and before it can return to earth, it must slow down.
Momentum always changes direction before price.
In the settings window for the indicator, you can adjust the Stochastic and choose up to 7-different moving average types. The indicator settings below are self-explanatory apart from the Overbought and Oversold, these are the levels you can set to determine when the buying or selling of an asset is starting to be exhausted.
Indicator Alert Settings
With this indicator, you can receive alerts when the %D period line first enters an overbought or oversold zone and again when it leaves the zone.
How to Configure Email & Telegram
Also included with this download you will have the Email & Telegram Testing Tool which will help you set up your accounts and test them to make sure they are working.
Learn How to Trade the Stochastic Oscillator
If you require additional information on how to trade using this technical indicator just visit our trading academy knowledgebase.
How To Install
First, make sure you have the cTrader trading platform installed and then simply unzip the file and double-click on it to automatically install onto the platform.
Join Telegram Community
You can join a Telegram community and chat with other traders to discuss, share and ask for help.