Market environments are always classified into 2 different types,
1. Trending Market
2. Ranging Market
First we will see how to trade trending markets using slow stochastic indicator, let me show you this step by step:
1. Find out direction of the trend.
2. Look for trading opportunities in that direction.
3. If trend is up look for buying signals only, if trend is down search sell signals.
4. Above signals is nothing but the crossovers on slow stochastic indicator.
Now in case of ranging markets traders need to again use slow stochastic indicator, specialty of range market is it move in between support and resistance. So when market reaches resistance zone it’s time to short sell confirmed by slow stochastic. When market trades near support zone it’s time to trade long, however trade can wait for buy crossover on slow stochastic indicator. Learn positional trading with slow stochastic indicator just call me on +91-99070777789.
About Bhaveek PatelBhaveek Patel is technical analyst and investor, his areas of interest includes stock market, forex and gold.
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