Analysis with Stochastic Oscilator
Stochastic is an oscilator indicator that serves to measure market saturation. But when compared with RSI, stochastic has advantages that have a buy and sell signals.
The market is said to be overbought if the stochastick value is above 80, and is said to be oversold if the market is under 20.
In overbought condition, we can prepare for open buy position, because the market will reverse direction down. And in oversold condition we can get ready to take open sell position, because market will reverse direction up.
There are 2 strategies that can be used by using stochastic. That is :
1. Buy bottom sell top Strategy
That is opening the position when the market is in saturation condition and stochastick intersection occurs.
Open Buy entry entry is when the stochastic is below 20 and the signal line intersects the main line from above, so that the signal line will be below the main line.
While the entry point for Open Sell is when the stochastic is above 80 and the signal line intersects the main line from the bottom, so next the signal line will be above the main line.
stochastic oscilator 01
2. Convergent strategy
Stochastic indicators can also converge and diverge, therefore in the event of convergent or diverging we can use it as a time to enter the market.
Open buy entry entry is when the graph is getting lower and stochasticknya higher, plus a signal line that cuts the main line from the top.
For an open sell point entry, is when the graph is getting higher while the stochastic is lower, plus the signal line that intersects the main line from the bottom.
stochastic konvergenstochastic oscilator 02
That's how to use stochastic oscilator in technical analysis.
Analyze with RSI indicator
RSI or relative strength index is an indicator used to measure market saturation. RSI has a scale from 0 - 100. According to the manufacturer, the market is said to be overbought if its RSI is above 70. And oversold if the value is below 30.
In overbought or oversold market conditions have the potential to reverse direction. So that RSI function can also be said as a signal for the reversal of the market direction.
The use of RSI can not stand on its own, but uses other tools that can serve as signals, such as candlesticks.
When we are trading using RSI, the entry point is:
- Buy when market oversold and appear reversal type candle like hammer, inverted hammer or candle piercing.
- Sell when the market is overbought with the emergence of candle type reversal like Shooting star, hanging man and others.
Please note that if we use the RSI as a determinant of conditions for turning directions, use only when the market is sideways.
In addition to the two entry points above, RSI can also stand alone as a signal to open a position that is only if it happens convergent or diverging. Like this :
converging rsi
There are also traders who argue that when the RSI line goes past the 50 level, the trend will continue. But this needs to be proved. Please try to check kebenarnnya.
The market is said to be overbought if the stochastick value is above 80, and is said to be oversold if the market is under 20.
In overbought condition, we can prepare for open buy position, because the market will reverse direction down. And in oversold condition we can get ready to take open sell position, because market will reverse direction up.
There are 2 strategies that can be used by using stochastic. That is :
1. Buy bottom sell top Strategy
That is opening the position when the market is in saturation condition and stochastick intersection occurs.
Open Buy entry entry is when the stochastic is below 20 and the signal line intersects the main line from above, so that the signal line will be below the main line.
While the entry point for Open Sell is when the stochastic is above 80 and the signal line intersects the main line from the bottom, so next the signal line will be above the main line.
stochastic oscilator 01
2. Convergent strategy
Stochastic indicators can also converge and diverge, therefore in the event of convergent or diverging we can use it as a time to enter the market.
Open buy entry entry is when the graph is getting lower and stochasticknya higher, plus a signal line that cuts the main line from the top.
For an open sell point entry, is when the graph is getting higher while the stochastic is lower, plus the signal line that intersects the main line from the bottom.
stochastic konvergenstochastic oscilator 02
That's how to use stochastic oscilator in technical analysis.
Analyze with RSI indicator
RSI or relative strength index is an indicator used to measure market saturation. RSI has a scale from 0 - 100. According to the manufacturer, the market is said to be overbought if its RSI is above 70. And oversold if the value is below 30.
In overbought or oversold market conditions have the potential to reverse direction. So that RSI function can also be said as a signal for the reversal of the market direction.
The use of RSI can not stand on its own, but uses other tools that can serve as signals, such as candlesticks.
When we are trading using RSI, the entry point is:
- Buy when market oversold and appear reversal type candle like hammer, inverted hammer or candle piercing.
- Sell when the market is overbought with the emergence of candle type reversal like Shooting star, hanging man and others.
Please note that if we use the RSI as a determinant of conditions for turning directions, use only when the market is sideways.
In addition to the two entry points above, RSI can also stand alone as a signal to open a position that is only if it happens convergent or diverging. Like this :
converging rsi
There are also traders who argue that when the RSI line goes past the 50 level, the trend will continue. But this needs to be proved. Please try to check kebenarnnya.
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