Fast & Slow StochasticsTechnical Analysis
Stochastics also displays overbought and oversold conditions. Stochastic Indicators have 2 lines, the first is known as %K and the other is %D. These lines move in between the ranges of 0 and 100. %D is the moving average of %K. %D also develops better signals and is ultimately more important. Stochastics is a banded indicator, a reading over 80 is overbought, a reading below 20 is oversold. Typical settings are 14/3, 17/9, and 5/3.
The trading strategy is slightly different in comparison to RSI. Buy signals are created when the %K line crosses above the %D line in the oversold zone and then rises out of oversold, sometimes after a bullish divergence. Sell signals are created when the %K line crosses below the %D line in the overbought zone and falls out of overbought, sometimes after a bearish divergence.
Market can rally or fall within the overbought and oversold zones, so wait until it clears the zone to trade. Filter trades using the trend. Only take bullish signals in an uptrend, and only take bearish signals in a downtrend.
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International Economic Analysis:
- Major Currency Economic Summaries
- Performance of Major Imports and Exports
- Mandates of Central Banks versus Expectations
- Performance Indexes of Major Economies
- Economically Correlated Currency Projections
- Large Funds Currency Sentiment Readings
- List of Technical Indicators to Look For
- Occasional: Foregin Exchange Technicals Markups
American Markets Analysis:
- Summaries of American Economic Structure
- Performance of Major
- Federal Reserve Mandate versus Expectations
- Performance Indexes of U.S Economy
- Economically Correlated U.S Dollar Projections
- Large Trading Fund Index Sentiment Readings
- Market Wide Earnings Versus Valuations
- Fundamental Ranking of U.S Business Sectors
- Best and Worst Future Consensus Estimates
- Occasional: Firm Fundamental Strength Report
- List of Technicals to Look for While Trading
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