Stochastic Oscillator on H4 - Forex Trading with EAX Dashboard

Stochastic Oscillator on H4: Confirm Overbought and Oversold Momentum in Forex Trading

Understand how the Stochastic Oscillator on the 4-hour chart helps confirm momentum for high-probability trade entries using the EAX Dashboard system.

What is the Stochastic Oscillator?

The Stochastic Oscillator is a momentum indicator that compares the closing price of a currency pair to its price range over a set period. It generates two lines, %K and %D, that oscillate between 0 and 100, indicating overbought or oversold conditions.

How the Stochastic Oscillator Works on the H4 Timeframe

• A reading above 75 signals an overbought market, which may indicate a potential price reversal or pullback.
• A reading below 25 signals an oversold market, suggesting a possible price bounce or reversal upward.

Using the Stochastic Oscillator in the EAX Dashboard System

1. Check the H4 chart and locate the Stochastic Oscillator indicator panel.
2. Identify if the oscillator is above 75 (overbought) or below 25 (oversold).
3. Confirm that this momentum aligns with other EAX Dashboard signals, including the main trend (Pin 1) and Fibonacci support/resistance levels (Pin 2).
4. Only enter trades when all confirmations are aligned for better accuracy.

Mastering the Stochastic Oscillator on the H4 timeframe can greatly improve your forex trading decisions with the EAX Dashboard's multi-timeframe strategy.