How to Trade With the Stochastic Oscillator on IQ Option

Visit Website.
Features
Bonus Codes
Rating
REGISTER
1 Quotex logo without background
  • Start trading with $1
  • Earn up to 95% profits
  • Fast payments
  • $10 minimum deposit
  • $10 minimum withdrawal
Share this

The trend is your friend, so they say.

But what happens if instead of following a trend you trade on a trend reversal?

This is what pro traders count on to win continuously on IQ Option.

Visit Website.
Features
Bonus Codes
Rating
REGISTER
1 Quotex logo without background
  • Start trading with $1
  • Earn up to 95% profits
  • Fast payments
  • $10 minimum deposit
  • $10 minimum withdrawal

Knowing when to trade and how to trade overbought and oversold levels in a market.

Why? Because this is where the gold mine lies. If you get it right, you can easily ride any trend, whether up or down, and gain more profits.

Who doesn’t want extra income? Virtually no one.

Visit Website.
Features
Bonus Codes
Rating
REGISTER
1 Quotex logo without background
  • Start trading with $1
  • Earn up to 95% profits
  • Fast payments
  • $10 minimum deposit
  • $10 minimum withdrawal

Today, I want to share with you how to trade profitably using a stochastic oscillator on IQ Option.

Matter of fact, this is the same tool trusted by most IQ Option traders to predict the future of any underlying instrument.

So, let’s get right to it.

What is a stochastic oscillator?

As per its name, this indicator doesn’t follow the price, volume, or anything else. It only responds to the momentum of the price and actually and shows when the price of a direction is about to change.

Visit Website.
Features
Bonus Codes
Rating
REGISTER
1 Quotex logo without background
  • Start trading with $1
  • Earn up to 95% profits
  • Fast payments
  • $10 minimum deposit
  • $10 minimum withdrawal

This fact alone makes the stochastic oscillator perfect for predicting future price movements.

How does stochastic work?

The stochastic oscillator follows the speed and momentum of prices. It also shows trend reversal points, therefore, presenting you with a rare opportunity to take a peek into where the prices might move next.

This is crucial for you as a trader.

Why?

You get insights on impending trend reversal points and therefore prepare plans on market entry and exit points.

The stochastic oscillator works on the premise that whenever there’s an uptrend, prices will be higher than the previous period closing price. On the other hand, during downtrends, prices will be lower than the previous closing price.

The oscillator is made up:

  • Two lines running horizontally.
  • Two lines representing moving averages measuring the fast and slow ones.

Technically, the fast-moving average is set at a period of 3. The slow-moving average measures a period of 13.

Additionally, the oscillator ranges from 0 and 100. Both of these lines are set at 20% and 80% by default respectively.

Interpretation of stochastic oscillator signals

  • Whenever the fast and slow-moving averages remain above the 80% level, the instrument is said to be overbought.
  • When the two lines fall under 20%, it indicates the overselling of the instrument.

Before I show you how to set up a stochastic oscillator in IQ Option, take note of the following crucial information.

A decrease in prices doesn’t always indicate a buy signal.

Why?

This is because in most cases, instruments can’t remain in the oversold zone for a longer period without leaving.

Likewise, the upward rally of prices doesn’t mean you should enter a buy position. Instruments can sometimes remain at an overbought level for long especially during a strong uptrend.

With that in mind, you are ready for the next step.

Visit Website.
Features
Bonus Codes
Rating
REGISTER
1 Quotex logo without background
  • Start trading with $1
  • Earn up to 95% profits
  • Fast payments
  • $10 minimum deposit
  • $10 minimum withdrawal

How to set up a stochastic oscillator on IQ Option.

As a side note, this indicator works best with Japanese candlestick charts. So make sure you are using them on your trading charts. Proceed.

  1. Login to your IQ Option account and locate the indicators feature on the bottom left corner.
  2. Click on the Popular tab and then choose Stochastic oscillator.

Here are the indicator’s settings you should use:

The %k line is for the period.

IQ Option puts it at 13 and in blue color. Remember the period can be anything from 13 days, years, months, etc.

The %d line represents a simple moving average of %k. It is orange in color.

As of the other two lines, they represent overbought (80) and oversold (20) and are green and red respectively.

However, I would highly recommend you leave these stochastic oscillator settings as they are. Finally, click on Apply to add the indicator onto your IQ Option trading chart.

Stochastic oscillator on IQ Option

How to trade on IQ Option using a stochastic oscillator.

1. Trading overbought and oversold levels on IQ Option.

Picking Buy signals with stochastic.

Whenever both the slow and fast-moving averages get below the 20 (oversold level), you should expect the trend to turn bullish.

As confirmation of this, wait for the fast-moving average to cross above the slow MA.

Visit Website.
Features
Bonus Codes
Rating
REGISTER
1 Quotex logo without background
  • Start trading with $1
  • Earn up to 95% profits
  • Fast payments
  • $10 minimum deposit
  • $10 minimum withdrawal

Stochastic indicator on IQ Option

Picking Sell signals with Stochastic.

Sell when both the slow and fast MA go above 80 mark (overbought level). Your confirmation should come when fast MA crosses below the slow MA.

2. Trading divergence using a stochastic oscillator.

Commonly, divergence comes about when the price and the indicator move in different directions (diverge from each other).

This shouldn’t come as a surprise because a stochastic oscillator doesn’t follow the price.

How then should you interpret this?

Well, with divergence, comes support and resistance break on the trading chart. You should, therefore, expect the development of a new trend most likely in the opposite direction.

Conclusion

The stochastic oscillator is a very useful tool.

But as I always say on this site that no one tool is 100% perfect. You shouldn’t rely on a single indicator to make trading decisions. Luckily, IQ Option has a ton of indicators you can combine with a stochastic oscillator to deliver stellar results.

I suggest that you try this indicator with trend-following indicators or better yet, other momentum indicators. Try that with this free IQ Option demo account and see what happens.

Also Read: – How to Place Your First Trade On IQ Option.

 

Visit Website.
Features
Bonus Codes
Rating
REGISTER
1 iq-option-Logo
  • Available on all devices
  • Demo Account Available
  • Trading Signals Available
Get FREE $10,000 in Your Demo Account.
* Mpesa, Online Naira, Airtel Money, Skrill, and Neteller accepted.
Share this
Visit Website.
Features
Bonus Codes
Rating
REGISTER
1 Quotex logo without background
  • Start trading with $1
  • Earn up to 95% profits
  • Fast payments
  • $10 minimum deposit
  • $10 minimum withdrawal

Recent Posts

15 best countries to become rich

You Will Become Rich Quickly if You Live in One of These 6 Countries.

Where in the world is it easiest to become rich? While so many people think that to become rich you’ve got to live, work, and do business in Iceland, Sweden, ….

0 comments
You Can Make $274

You Can Make $274 if you Invest $100 Ten Times With a Winning Rate of 70%

Quite so often we receive WhatsApp texts or even telegram messages of traders asking, “how much will I make if I invest $100 in Olymp Trade?” While it is easy ….

0 comments
XM Seminars 2020

XM Seminars for 2020 | Register a Real Trading Account to Book Seat

XM Global Ltd operating under the business trading name XM is a securities service provider licensee regulated and authorized by the International Financial service commission (IFSC) in Belize under the ….

1 comment
XM MT4

XM MT4 | How to Make Money Trading Forex on Your Smartphone

Did you just register for a Forex trading account – which by the way, you hope to use to make so much money online but are still stuck wondering what ….

1 comment
XM Global vs Olymp Trade | Which Broker to Sign Up With?

XM Global vs Olymp Trade | Which Broker to Join?

XM Global vs Olymp Trade, which broker should you sign up for? The real question should be, between Forex trading and Fixed Time Trading, what’s best for a beginner? Tell ….

1 comment
No deposit Forex Kenya bonus

XM Global No Deposit Bonus Forex! XM Forex $30 Bonus

COLWMA (City of London Wealth Management Awards) winner of Best FX Service Provider 2023, XM Forex is one of the best Forex brokers with a no deposit bonus globally. The ….

0 comments
Base and quote currencies in Forex XM

XM Forex: How Does Forex Trading Work?

To understand how Forex trading works, we must first understand what Forex is. And what is Forex you ask? Forex, also known as foreign exchange or FX, is the global ….

0 comments

XM Forex Bonus $30 – How to Start Forex Trading Without Money

One of the reasons why most new traders fail to go past the demo account is the fear of losing money trading on a real account. But what if I ….

0 comments
XM Forex $10,000,000 Promo

XM Forex 10th Anniversary Promo | Up to $1,000,000 to be Won in Prizes

Hey there,Do you want to raise so much money so fast for Christmas? How much do you wish to raise?Ksh. 50,000, €1,000, ₽2,000, ₹4,000,… or $10,000?Well, if your budget falls ….

0 comments
Why is Forex trading popular

XM Broker: Why is Forex Trading Popular?

There are so many reasons why people trade Forex. Some of these reasons also double up as the advantages or benefits of Forex trading. And what are these benefits you ….

0 comments

Broker Comparison

Best broker platforms

Top 5 Binary Options Brokers With $10,000 Demo Account

Binary options trading is fast becoming popular in the world and with this popularity the urge and to find the best broker to trade with. But when we talk of ….

0 comments
XM seminars 2019

Tips to Becoming a Forex Millionaire in Kenya

Most people in Kenya have turned to forex trading to earn an extra coin. To start trading forex though, you need to have an account that will hold your money ….

0 comments
Sabio Trade

SabioTrade: Get Funded and Withdraw up to 80% Profits

Are you looking for a way to trade Forex with a funded account and withdraw up to 80% of your profits? If so, you might be interested in SabioTrade, a ….

0 comments
Quotex Vs Olymp Trade

Quotex vs Olymp Trade. Which Broker to Sign up With?

Quotex vs Olymp Trade which broker should you sign up with? This is a common question that we get all the time, especially from newbie traders who want to sign ….

1 comment
Quotex Broker Regulation Vs Olymp Trade Regulation

Quotex Broker Regulation Vs Olymp Trade Regulation

Quotex Broker is a binary options broker that offers access to its trading platform globally to traders who’d like to make money trading in shorter time frames. Just like Quotex, ….

0 comments
Forex Millionaires in Nigeria

Nigeria Forex Millionaires And Their Forex Strategies

Forex trading has spread to several parts of the world and is legal in Nigeria, and Africa. However, it operates within a gray area. Subsequently, the Central Bank of Nigeria ….

0 comments
Quotex broker. Best binary options brokers 2023

Is Qx Broker Among The Best Binary Options Brokers

Binary trading is one of the easiest and safest ways to trade online. It is also the fastest-growing form of investing. Binary trading is one of the easiest ways to ….

0 comments
IQCent Demo Account

IQCent Broker Review With User Opinion, Legit or Scam?

Do you want to start trading with IQcent and don’t know if to trust them or not? Welcome to our comprehensive review of IQCent, the online trading platform that has ….

1 comment
Register Iq Mining

IQ Mining Review Plus Users Opinion. Legit or Scam?

IQ Mining is a dual-purpose platform, serving as both a cloud mining hub for cryptocurrencies and a broker for Forex and binary options trading. Its efficient utilization of smart contracts ….

0 comments
South African Forex Millionaires And Their Money-Making Strategies

Forex Millionaires in South Africa and How they Make Money

Last week, we started a new series of listicles on this blog. Our objective? To explore, discuss, and reveal the faces of forex millionaires in the countries where forex is ….

0 comments

Business Ideas

Best business ideas to start in Kenya in 2022

What is the Best Business to Start in Kenya?

Kenya is a great place to start a business. The best type of business may be different for you, depending on your skill set and what you are looking for ….

0 comments
Small Business Ideas For 2021

What Business Ideas Make The Most Money

Are you an aspiring business entrepreneur? Check out our list of the most popular business ideas in 2024. People venture into the business world for different reasons. Some because they ….

0 comments
How to Make $10,000 a month with TikTok

What Business Can I Start With 2k In Kenya In 2024?

Kenya is a great place to start a business. The economy is growing, the population is young and there is a lot of opportunity for entrepreneurs. However, starting a business ….

0 comments
Profitable Business Ideas to Start in Saudi Arabia in 2021 (Make 375 SAR Daily in Saudi Arabia)

Top Business Ideas that Will Make 375 SAR Daily in Saudi Arabia in 2024.

It is common knowledge that Saudi Arabia is the world’s greatest oil producer. Around 25% of the world’s petroleum reserves are processed in the country. According to statistics, Saudi Arabia’s ….

0 comments
Top 50 Online Shopping Sites in India.

Top 50 Online Shopping Sites in India.

You must have found yourself ordering a thing or two from an online store and they delivered to your preferred address, right? Now that is the new fashion of doing ….

8 comments
Profitable businesses in Kenya - LPG Gass Business in Kenya

Top 50 Most Profitable Businesses in Kenya

Ain’t it not easy to say I want to start a business in 2024? Of course not. You have to do your due diligence: come up with a business idea, ….

0 comments

Top 50 business ideas for All Ages {Online and Offline Ideas}

Many people desire to venture into entrepreneurship for different reasons. For sure, being your own boss, working from your home, garage, or office, offers total control and satisfaction. You can ….

0 comments
Food Blogs on Instagram

Top 5 Instagram Businesses to Start

Instagram is an amazing photo and video sharing app that we use to connect to friends and family online. Interestingly, Instagram is as much a great place to start your ….

0 comments
Best Businesses to Start in Eldoret

Top 30 Best Businesses to Start in Eldoret Town

Would you like to start a small business in Eldoret town? Which business do you have in mind? Do you have data to back up its profitability and to maybe ….

1 comment
Small Businesses For University Students

Top 20 Small Businesses For University Students In Kenya

Are you a university student in Kenya and looking for small business ideas to start? You are in the right place. In this article, I will show you the #20 ….

0 comments

Make Money

back view of young couple removing picture from wall isolated on white

Works at Home: 30 Ways to Make Money Fast (Online And Offline)

No matter what your situation is, there’s a side gig for you. Whether it’s to make a little extra cash or help solve an emergency issue, having a backup plan ….

0 comments
The meme coin "Doge" on black stones.

Will Shiba Inu Coin Keep Making Investors Rich in 2024?

The Shiba Inu Coin has been one of the most popular crypto success stories since 2018. This meme-based cryptocurrency moved to its highest in just a few years making it ….

0 comments
Proof that you can make money from TikTok - Make money online in Kenya

Which TikTok Star Will Have the Most Followers in 2024?

TikTok is a social media app that has taken the world by storm. It is a platform where users can share short videos of themselves. The app has been downloaded ….

0 comments
Coding

Which Freelancing Site Should I Visit To Make Money Coding?

Freelancing is the best way to make money because it allows you to work on your own time and set your own schedule. You can take jobs that are local ….

0 comments
Play to earn crypto games - Earn free NFTs

Where to Get FREE NFTs: 11 Easy Ways to Do It

Non-fungible tokens (NFTs) are all the rage right now. These unique digital assets are quickly becoming a staple in the world of blockchain gaming and collectibles. The best part about ….

1 comment
Which jobs are the highest paying in Kenya?

What’s The Best Business to Start in Kenya in 2024?

There are many businesses that you can start in Kenya in 2024. However, not all of them will be successful. It is important to do your research and find a ….

0 comments
Olymp Trade Video

What No One Says About Olymp Trade! Put Together in a Video.

Could this be you? You opened an Olymp Trade account. Made a deposit. Traded on a live account for the first time. The outcome? You lost your first $10 deposit. ….

0 comments
Make money Online with this app

What is the Easiest Way to Make Money Online in Kenya in 2024?

There are thousands of ways you can make money in Kenya. Some of them require no skill or experience whatsoever, others? You’d need skill and experience to do with success. ….

0 comments
white and brown happy birthday card

What is The Easiest Way to Make $100 Today?

If you’re already making money online, skip this post. If you’re not already making any money online keep reading. Because the methods that I’m about to show you in this ….

2 comments
How To Make Money Via WordPress In Kenya

What is The Easiest (Non-Scammy) Way to Make Money Online?

Making money online can seem like a daunting task. There are so many scams and get-rich-quick schemes out there that it’s hard to know what is legitimate and what isn’t. ….

0 comments

Quotex Tutorials

Quotex for beginners

What is Quotex? Quotex Trading Course for Beginners

Quotex is a cutting-edge digital options trading platform known for its user-friendly interface and numerous tradable assets, including OTC pairs, traded 24/7. The Quotex trading platform accommodates traders of all ….

0 comments
Trading in Quotex

Try This Quotex 1 Minute Strategy for Fixed Time Trades

While binary options trading is easy and only requires traders to choose between two different outcomes, it isn’t always profitable without a strategy. My honest truth, You can lose so ….

2 comments
Trader of the Week - Top Traders in Quotex

Top Traders on Quotex ++ Earnings And Strategies

Quotex, the most popular trading platform in 2024, has seen a surge in popularity in recent years. With more and more people looking to make a quick buck, it’s no ….

0 comments
Risk management in Quotex

Risk Management: Trading Course for Beginning Quotex Traders

Risk management is an important discipline that traders must understand and implement if they want to protect their capital and improve their potential for profits. In other words, without risk ….

0 comments
Download Quotex App

Qx Broker: How to Register with Quotex, Quotex.io in 2024

In order to start trading on the Quotex broker platform, either on the demo or live account, you must create an account. If you are doing this for the first ….

0 comments
Fund Quotex with Instant EFT in South Africa

Qx Broker : How to Fund Quotex With Instant EFT in SA

Are you a South African trader looking for a reliable and efficient platform to deposit money and start trading with? Look no further than Quotex! With the addition of the ….

2 comments
Quotex 80% bonus codes

Quotex, Qx Broker 80% Weekend Bonus Promo Code

Welcome to the exciting world of trading! If you’re looking for a reliable and user-friendly trading platform, then look no further than Quotex.io. Qx broker is today giving out trading ….

0 comments
Quotex Email after withdrawal

Quotex Withdrawal Problem? Use This Other Method

Are you looking for a reliable and profitable binary options trading platform? Do you want to join thousands of traders who are making money online with Quotex? If yes, then ….

0 comments
Quotex Weekly Tournament

Quotex Weekly Tournament: Up to $10,000 in Prize Money

Every other month, the Quotex trading platform allows its users to participate in trading contests and earn more money. One such contest or tournament is the Quotex weekly tournament with ….

0 comments
What is fundamental analysis?

Quotex Trading Course for Beginners: Market analysis

Once you create a demo account in Quotex to start trading, you will notice that the platform has some type of chart. Generally, trading platforms have 4 different chart types ….

0 comments

XM Tutorials

XM MT4 platforms

How XM Trading Works in Kenya

If you went to Google and searched, “how XM trading works” then chances are, you have never traded before, you don’t have a trading account and most importantly, you want ….

0 comments
How to trade on XM Forex

How To Trade With XM Forex.

So, you have just created a trading account in XM Forex and completed the account opening process successfully and now you are wondering, what next? How does Xm trading work? ….

0 comments
How to trade with XM MT4

How to Trade on XM Even on Weekends

Trading the financial markets via a broker like XM means getting access to real-time pricing of the financial assets when you want to trade. But, as we all know, the ….

0 comments
How to open a trading account in Kenya with XM

How to Open a Trading Account With XM in Kenya.

If you are reading this post then chances are, you are convinced that Xm is the best broker for retail Forex, both locally and globally. And the truth is, XM ….

0 comments

 

Leave a Comment