How to use RSI and Stochastic Forex Indicator in one chart Relative Strength Index (RSI):
This index is a popular indicator of the Forex currency market. The RSI measures the ratio between the upward and downward movements and Forex Relative strength index has a value between 0 and 100. If the RSI Forex indicator is above 70, the financial instrument is considered to be overbought . an if RSI indicator Forex is below 30, the market price is considered to be oversold.
Relative Strength Index (RSI) Forex indicator
Stochastic Oscillator:
This indicator is used to indicate overbought / oversold conditions from 0-100. It is based on the observation that in an up trend, closing prices tend to be concentrated periods of the top of the trading range. When the rates yield vice versa in a downtrend, the closing prices tend to be close to the extreme low of the range during the period.
Stochastic calculations produce two lines,% K and% D that are used to indicate overbought / oversold areas of a chart. Differences between the stochastic lines and the price of the underlying financial instrument provide strong trading signals.
Stochastic Oscillator indicator forex
