Data:2009-12-12 2:34
Category: Money Tips Date: 2006-09-01
Stochastic Oscillator (K% D) is a Qiaozhilaien (George Lane) the development and promotion. It is based on the observation that, in an upward trend, the closing price will be closer to the upper end of the price range, on the contrary, in the downward trend, the closing price will be closer to the lower end of the price range. Stochastic Oscillator formed by two lines, namely the K-line and D line, in which D-line is more important. Their construction is: K = 100 * [(closing price of the low-N day) / (N days, the highest price of the low-N day)]; D = 100 * K, N-day moving average. KD from 0 to 100, a constant vertical ranges.
Stochastic Oscillator The basic use is as follows:
1, K 20 generated when following up cross-D buy signal;
2, K 80 or more down the cross-sell signals generated when D;
3, KD more than 80 representatives of overbought;
4, KD 20 by the representatives of oversold;
5, KD departure from the signal generated is a trend reversal may be an important warning;
6, KD breakthrough in trading ranges and trends in the early stages of the formation are always in overbought or oversold, this time, KD should be ignored, while the emphasis on considering the price movement itself.
