The Stochastic Power Play For Short Term Trading
Imagine if you'll a giant ocean with tides, waves and ripples. Short term traders are focusing upon the ripples, market movements that occur day to day or intraday. Had you been to trade these ripples if you don't take into account the direction from the tides and also the waves otherwise good trades should find themselves losing money simply because the industry zigged whenever you thought it might zag. The Stochastic Power Play is aimed at trading the ripples only when in line using the waves, so when the waves are actually in line with tide ensuring a solid foundation for decision-making. About Stochastic Stochastic is usually an oscillator, it assumes that near-term market movement is random even so the pattern of randomness will adhere to a longer term trend. Imagine a man walking a dog using a leash. The dog moves side to side at random dependant on whatever grabs its attention even so the pattern of randomness follows the trail the man is walking. Stochastic