Now it’s your turn. At this point of the course we have set a task to reinforce what we’ve shown you. This task will require you to use a charting package to carry out the exercise. You can set up a free practice trading account with access to charts here.
Goal: To add a stochastics indicator correctly.
Exercise: Add a 14-period stochastics indicator to a chart of any timeframe and add bounds at 80 and 20. Can you spot when the %K goes into one of these areas and stays there for an extended period of time, what is happening to the price when this occurs? Increase the period length, to say 28, and see how the %K changes.
Difficulty: 2/3
Time to complete: 15 minutes
Solution….don’t press play until you’ve done your bit:
