Wednesday, July 2, 2008

ADX with Stochastic




Stochastic: compares a stock's closing price to its price range over a given period of time.

Using the both will give traders great forecasting trend strength.

Two lines in Stochastic:

1) %K: This is the number of time periods used in the stochastic calculation.

2) %D: This is the number of time periods used when calculating the moving average of %K.




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