Nse charts are used to track the price movement of nse stocks. As the volumes are high in NSE’s index nifty compared to other stocks, chart readers too are high for nifty chart. In this article, let us know what is stochastic indicator and how to trade on nse charts like nifty future chart and BSE charts in particular using stochastic oscillator.
* Stochastic oscillator was developed by George C. Lane
* Like other indicators, this does not take price in to consideration.
* George used momentum to track the movement of the stock charts.
* Stochastic oscillator could reveal the trend reversals as well as over bought and over sold positions on nifty intraday chart.
* Stochastic indicator has a reading range from 0 to 100 on intraday charts
* It contains an oscillator called stochastic oscillator which swings between 1 and 100 on nse charts
* S.O is divided in to two basic types. Fast stochastic oscillator and slow stochastic oscillator.
* Slow Stochastic oscillator is smoothened version of fast one.
* As this indicator works on reversal trends, the following are the common notations
* Buy Nifty future if stochastic is around 20, over sold zone on nifty live chart
* Sell Nifty future if stochastic oscillator is around 80, over bought zone on intraday nifty chart
* Finding the divergences on nifty intraday chart gives best results which is the most important application.
Posted on: 2016-11-19 12:16:44 Updated on: 2016-11-19 12:16:44