The swami stochastic indicator is a forex trading indicator. This indicator is used to know out the overbought conditions and oversold conditions of the market. This indicator is mainly used for short term trading and short time frames.
Swami stochastic Indicator
This indicator gives good and accurate result in short term trading and time frames. The trader either have less experience or great experience in the trading can use it and understand and it easily. The swami stochastic indicator can be used for any currency pair.
The oversold condition meets in the swami stochastic indicator when the value on the chart lies below the 20 value. This gives long trading chances to the traders. The indicator bars below the 20 give sell signals. The stop loss point is highlighted under the oversold bars.The trader can get loss when the value becomes less then 20.
The overbought condition meets in the swami stochastic indicator when the value on the chart lies above the 80 value. This gives short term trading chances to the traders. The indicator bars above the 80 give buy signals. The stop loss point is highlighted above the overbought bars. The trader take profit when the value becomes more then 80.