2018-7-22 17:16 |
While there are many tools that can assist with this, one often overlooked indicator is called the stochastic oscillator.
Nothing unique to the world of blockchain, the stochastic is a momentum indicator that compares the closing price of the asset with its high-low range over a certain period of time, it’s a handy tool.
Fortunately, crypto traders need not worry about the calculation part, as the trading platforms and chart softwares process the complex formula and produce a stochastic oscillator, as seen in the chart below.
Note that stochastic tends to work best in broad trading ranges or slow-moving trends.
Stochastic: a leading indicator
Still, the stochastic is one tool of many.
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