Stochastic Oscillator
Stochastic indicator is of oscillator type and is different from the previous ones. It uses support and Resistance levels to predict price turning points instead of simply calculating recent price movements. In the core lies the idea that the price of cryptocurrency will approach extremes before turning around.
When the momentum picks up the price approaches one of the graph’s edges.
When the momentum slows down the price bounces back away from the boundaries.
Pay attention to the convergence/divergence of the meanings of Stochastic indicator and trend lines. Divergence is a signal to act.
