The stochastic oscillator is a momentum indicator comparing the closing price of a security to the range of its prices over a certain period of time.

The stochastic oscillator is in overbought zone, above 80. This indicates a potential short trade

We can confirm this with The Bollinger Bands Indicator.

Price is penetrating above Higher Band and closing below it. This signals a failed breakout and a potential reversal, seting up a short trade.


OHLC Price Action Trading Technique

10 Keys to Successful Forex Trading Book


2 comments on “Stochastic Short Trade Setup on USDJPY 2017.05.28 19:16:01”

  1. Rafa Barboza Carballo Reply

    Thank you very mush for this information. I really need to lern how trade. But tell me do you have an spanish page ?

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