Good morning.my question on stochastic indicators is this: as in the attached diagram,to indicate that price has been overbougt and oversold,must the two lines pass the d 80 and 20 Marks respectively or if only one of the lines pass through those marks (i.e. above 80 or below 20),can that be used to indicate overbought or oversold points on the chart?
can someone help me out with this please?
Hi,
The point of the Stochastic Oscillator is to find overbought / oversold conditions in the market, that’s what’s its for.
Best,