The stochastics indicator is similar to the relative strength indicator in that it measures the momentum of the market and can warn as to when a market is perceived to be overbought or oversold. Any reading above 80 is considered overbought and below 20 is considered oversold. Swing traders use the stochatic indicator to buy [...]
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Relative Strength Index, or RSI, is a favourite amongst many bank traders. It is a momentum indicator that helps identify the trend and potential overbought and oversold areas in the market. The indicator’s scale ranges from 0 to 100. Usually, readings below 30 indicate oversold and readings above 70 indicate overbought. When the indicator is [...]
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