The stock indicator Stochastic Any pair can be applied to multiple symbols to take advantage of correlations between different currency pairs.
. The pair EUR / USD and USD / CHF are negatively correlated
. The pair AUD / USD and NZD / CHF are positively correlated
Broker - Broker Exchange Online : Platform Trading Metatrader MT5
Interpretation Rules - Signal Trading
- Buy signal: bullish market
. If one of Any Pair Stochastic lines cross down the oversold level,
then passes again on the rise this level - Trend bullish . The line Any Pair Stochastic% K crosses the line upward Any Pair Stochastic% D and the reading of the indicator is below the overbought level - Trend bullish
. Divergence bullish: the price reduction (new highest lower) and Pair Any Stochastic oscillator up (new higher low) .A upward correction of prices is expected.
- Selling signal: bearish market
. If one of Any Pair Stochastic lines cross upwards the overbought level and then passes back to lower that level - trend bearish
. Any Pair Stochastic line crosses down the line Slow Stoch signal and the reading of the indicator is higher in oversold - Trend bearish
. Bearish divergence: a price increase (new higher low) and Pair Any Stochastic oscillator down (again highest lower) .A downward correction of prices is expected.
Read more about the rules and trading signals:
Online Stock Exchange - First Technical Analysis Stochastic Oscillator PSO
Trader Award - Technical Analysis Alert StoPSar
Trader Award - Technical Analysis Multistochastic
Automated Trading - Scalping EA
Trading System - Price Action AI2.
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