Place high quality trades with Stochastic Oscillator on Deriv

Stochastic Oscillator or call it Stochastic Indicator is a popular trend indicator developed by Dr George Lane in the 1950s. In this article, we will together see how this indicator works and how you can use this indicator to get high-quality signals on Deriv Trading platform.

What is a Stochastic Oscillator?

A Stochastic Oscillator is a momentum indicator via which you can predict the market movements of security prices. This indicator compares the security closing price to its price range over a specific period. The main components of the indicator are two moving averages lines name %K and %D that oscillates around line 0 -100. when these two lines oscillate near line 20 it signals that the market is currently bearish in technical terms we can say that the market is currently at an oversold level conversely, when these two lines oscillate near line 80 it signals that the market is currently bullish in technical terms we can say that the market is currently at the overbought level.

Unboxing Stochastic Oscillator

 

When you unbox the indicator you will see the important components of the indicator. As you can see given above is the fast line and slow line. Here, the fast line is %D with 3 periods and %K with 14 periods.

Buy with Oversold Level

 

 

When the %K and %D lines intersect each other below line 20 it signals an upcoming bullish trend and here, you can place a buy trade.

As, you can see given above is the 10-minute chart of AUD / JPY.  and we can clearly the moving average line below line 20. It signals an upcoming bullish trend and here we can place a buy trade.

 

Sell with Overbought Level

 

 

Conversely, When the %K and %D lines intersect each other above line 80 it signals an upcoming bearish trend and here, you can place a sell trade.

As you can see given above is the 10-minute chart of AUD / JPY.  and we can clearly the moving average line above line 80. It signals an upcoming bearish trend and here we can place a sell trade.

 

How to trade in Deriv Trading platform?

Deriv is an online trading platform that has gained a massive name in the field of trading. The main goal of the company is to help you boost start your trading career. Getting started and trading online with Deriv was never that easy. In this article, I will cover everything about Deriv and how you can trade with the same.

How to trade with Deriv?

Deriv is an online trading platform. You can start trading with this platform in just a few simple steps.

Step 1: Create  a free account

Deriv is beginner friendly platform and therefore, they offer two types of account.

  • Practice account: A practice account is a virtual money account where you get $10, 000 in virtual currency via which you can practice and start trading for free. A practice account is a look-alike account of a real account. here, you test your trading skills and improve trading accuracy.

 

  • Live account: This is the account where you make live money and withdraw your real money. In order, to open a Live account you need to make a deposit of at least $10.

 

Step 2: Understand trading tools

If you want to become a real pro trader you need to understand trading tools. Trading tools like Moving averages, Support & Resistance are considered the ABC of trading. I will highly suggest you get started with these tools first. The best way to boost your trading career is by getting access to Deriv Academy. here they will teach you everything from basics to advanced and will help you become a pro.

 Step 3: Place trades according to your analysis

Once you have understood how to use trading tools now you need to analyse the chart. If according to your analysis market will stay up place buy trade and conversely, If according to your analysis market will stay down place sell trade.

 

Step 4: Make profit

Once you have placed trades after the expiration of time the broker will check the same. If your trade is correct you will earn the invested amount plus the rate of return. Suppose, you invested $100 in gold with of a contract in 80% profit. After the trade expiration if your trade is correct you will earn the invested amount i.e. $100 plus $80 in return.

Open Deriv Trading account for free

 

 

What is Deriv & How it works?

What is Deriv ?

Deriv is an online trading platform where you can buy or sell commodities, indices, cryptocurrencies & more. This platform is primarily known for providing binary options, Forex and CFD (contracts for difference). Since it’s launch, the company has gained huge success and popularity. Users all around the world have appreciated the beginner-friendly interface of the platform.

Talking about the regulations, The company ensures that the traders are trading in a highly safe environment. The company is regulated by International Financial Services Commission (IFSC) in Belize.

How Deriv works?

Step 1. Open a Deriv account

Firstly, you need to open a Deriv account. Getting started with Deriv is very simple and easy. Unlike, In old times when you needed dozens of paper works. Here, In Deriv is not the case. The company offers two types of accounts.

  1. Demo account: A demo account is a practice account where you can practice trading for free. It is just like a real account where you will get $10,000 in virtual currency.

 

      2.Real account: This is the account where you trade live and make real money. Here, you need to deposit real money and once you are confident enough with practising in a demo account you can shift to real account and make live money.

Step 2: Make a Deposit

Once you practised properly in Deriv demo account. now, you can shift to the Deriv Real account. To do so, you need to make a deposit. The minimum deposit is $10. and you can trade for as low as $1 in a single trade deal.

Step 3: Analyse the chart

The third step is to analyse the chart. You can do so using multiple trading indicators. To sharpen your trading skills you can learn trading from Deriv Academy.

Step 4: Place the order

Once you have analysed the chart properly you need to place trades. If according to your analysis market will stay bullish place buy trade and vice versa, If according to your analysis market stays bearish place sell trade.

I wish you all the very best!!