{"id":3585,"date":"2022-08-25T13:22:39","date_gmt":"2022-08-25T13:22:39","guid":{"rendered":"http:\/\/kevinbk.com\/?p=3585"},"modified":"2022-08-25T13:34:56","modified_gmt":"2022-08-25T13:34:56","slug":"o-que-e-o-indicador-estocastico","status":"publish","type":"post","link":"https:\/\/kevinbk.com\/en\/what-is-the-stochastic-indicator\/","title":{"rendered":"What is the stochastic indicator?"},"content":{"rendered":"
When it comes to technical analysis, there are many different indicators out there. One of the most popular is called stochastic. In this article, we'll take a look at what this indicator is, how it's used, and what you need to know about it.<\/p>\n\n\n\n
So what is stochastic?<\/h2>\n\n\n\n
Stochastic is an indicator used to measure the momentum of a stock. It does this by comparing the current share price with its past prices. The idea behind this is that if a stock is rising rapidly, it will have a higher stochastic reading. On the other hand, if a stock is falling, it will have a lower stochastic reading.<\/p>\n\n\n\n
The stochastic indicator is composed of two lines. The first line is called %K, and the second line is called %D. %K is the faster of the two lines, and %D is the slower of the two lines.<\/p>\n\n\n\n
The indicator is considered in overbought territory when the %K line is above level 80, considered in oversold territory when the %K line is below level 20.<\/p>\n\n\n