STOCHASTIC OSCILLATOR

Stochastic oscillator is one of the widely used indicators for Binary Options Trading. As the name implies, stochastic oscillator is a curve which is oscillating between two levels - 0 and 100.

Stochastic is a momentum indicator which measures the divergence of a price in comparison to its price range over a predefined period of time. A 'period' number defining the stochastic curve (Example: stochastic period 14 or stochastic period 50 etc.) determines how many 'candles' in the past the stochastic indicator uses to calculate the price divergence. Measurement is calculated based on the asset's high and low price during a given period of time, so this setting determines how fast the stochastic curve will oscillate between the levels of 0 and 100.