Can we use Oscillators like RSI and stochastic for trending

Can we use Oscillators like RSI and stochastic for trending

20 February 2016, 22:09
Michael Armia CMT CEWA1
0
388

As we know oscillators used for trading range or sideways. but i will display below few chart which show us how we can detect trend from only looking for the RSI chart only or stochastic oscillator.



This chart is the stochastic oscillator (8,3,3) for EURUSD. if you looking for the period between the two blue vertical lines you can notice that stochastic didn't reach the area above 80 more than one time but it stays a long time below 20, what does that mean????




This chart is the RSI 14 for EURUSD for the same period. what could you noticed here? i think the RSI oscillate between 0 and 60 it didn't penetrate 60 again what does it mean?????

the answer will appear when looking for the price chart>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>




oh, it is a downtrend area so we can detect trend when looking only for an oscillator like RSI or Stochastic without watching the price chart. it is not only the secret in using oscillator there is a lot of secrets like price targets from RSI, we will describe it later.


Michael Armia, CMT, CEWA1


Share it with friends: