Indicator Stoch - Stochastic Oscillator.
This forex indicator for automatic trading shows me overbought and oversold levels of the asset in the financial market.
See how displayed Stochastic indicator on live chart:
The indicator is presented in the form of two lines of different colors, which move in the price range. The lower limit is set to 20. The upper limit - 80. If the lines are omitted below 20, therefore, the asset is entered into the oversold zone. If the line rises above 80, therefore, the asset is entered in the overbought zone.
Signals from the Stoch indicator for buying a forex pair:
1) When 2 80 line rise above the mark, I'm waiting for their turn. This blue line is to break through the orange line from top to bottom. This is a signal to buy PUT option.
2) When 2 20 line fall below the mark, I'm waiting for their turn. This blue line is to break through the orange line upwards. This is a signal to buy CALL option.
Best of all, this tool of technical analysis works in conjunction with RSI and trend indicators.