Perception Is Not Reality
This can help minimize the emotional decision-making approach that can happen during trading, leading to more successful trades. One way to compare recent closing prices to the previous trading range is to use the stochastic oscillator, which assists traders in identifying the end of one trend and the beginning of another one. Based on the notion that market momentum changes direction quicker than volume or price, the stochastic oscillator can be used to predict the direction of market movements, making it a momentum indicator. The stochastic oscillator is a bound oscillator, which means it operates on a scale from 0…