Stochastic Oscillator

In the fast-paced realm of forex trading, making well-informed decisions is essential for achieving success. A highly effective technique for understanding market dynamics is technical analysis, which leverages historical price data and statistical indicators to predict future price movements. Traders favor this approach because it offers a structured method to examine market trends and uncover potential trading opportunities.

Depth of the Market is a special technical indicator developed for the MetaTrader 4 terminal. It is designed to monitor the current price movement and also to determine the supply and demand zones. This tool has the form of a histogram or, as it is also called - the price ladder. Let's consider its installation, settings, and process of use in practice in detail.

One of the most important functions of financial markets, including the foreign exchange market, is the redistribution of money. Through the purchase/sale of stocks, precious metals, and currency, money passes from person to person, from company to company. Thus, in a market economy, a certain balance is naturally achieved, and an equilibrium is established. The inflow or outflow of money is called cash flow.

Almost all indicator strategies are based on the complex application of analytical tools. Today we will talk about the Thomas DeMark oscillator (DeMarker), which can be an effective addition to any trading strategy. What is the DeMarker Oscillator? The DeMarker indicator was developed by Thomas R. DeMark, a prominent trading theorist, and practitioner, and is described in his book The New Science of Technical Analysis.

When analyzing price movements on the chart before placing orders, traders can be hindered by minor price fluctuations - market noise. It is difficult for them to see significant trends, and it is easy to make a false forecast. There are numerous indicators designed for outlining the cycles and waves on a chart, and Zig Zag is one of them. It allows you to cut off the price noise and more accurately identify the key trend, significant price changes, reversals, and other important trend changes.

As the Wall Street classics say, successful trading is the art of reading market sentiment in order to accurately predict future price direction and move in the trend. The forex market also fits into this concept.

The Stochastic Oscillator is the full name of one of the most popular technical indicators, which is included in 80% of all existing trading strategies, if not more. It is a favorite tool for determining trend reversal points, both for beginners and experienced pros. And all thanks to its simplicity and high efficiency. In this article, we will learn how to configure the indicator for profitable trading, and what strategies to choose.