Categories: Forex Trading Strategies

Stochastic Oscillator Settings for 1 Min Chart: a Trading Guide

The stochastic oscillator is one of the most popular technical indicators used by forex traders for short-term charting. When applied to a 1-minute chart, the stochastic oscillator is a particularly useful tool for gauging the momentum of a currency pair and the possibility of a trend reversal. To set up the stochastic oscillator for a 1-minute chart, traders usually start by setting the following parameters: the %K period for 14 periods, %D period for 3 periods, and Slow Stochastic for 3,3, with a smoothing type of the Simple Moving Average (SMA). These settings enable forex traders to quickly recognize oversold and overbought conditions, thereby providing an opportunity to take advantage of potential reversals in a timely and efficient manner.

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