The role of these indicators in the overbought and selling means always a reflection, or only it gives false information and signals, and is it sufficient to enter and build trading on them only, or should we rely on the trend line?
Professional Bank traders use trend lines for their entry levels. And only use stochastic as a last check before entering. Eg if they were thinking of selling at a trend line and stochastic was oversold they wouldn’t sell. Otherwise it is great for monitoring your trade once executed. Never try using more than one oscillator.
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Thank you for the response, in your view, can stochastic only be used to enter trades?
Personally I wouldn’t rely solely on stochastics for entering trades. Rather I would use it to tell me when not to enter trades and once in a position to gauge when momentum is exhausting and hence when to close out the position. Just one more note is stochastics only applies when there is no economic data scheduled. Economic data can generate very large aggressive moves.
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Thank you for the informations