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Stochastic

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Stochastic Oscillator – FX Replay Guide

The Stochastic Oscillator in FX Replay is a momentum-based tool that helps you identify trend exhaustion, spot reversals, and fine-tune entries/exits. It compares the current closing price to the asset’s high-low range over a given period.

How to Add It in FX Replay:

  1. Open the Indicators panel.
  2. Search for “Stochastic Oscillator” or “Stochastics”.
  3. Use the default settings (%K = 14, %D = 3) or adjust as needed for your strategy.
  4. Add it below your chart for real-time momentum visualization during playback.

How to Use It in FX Replay:

Overbought & Oversold Levels

  • Above 80 = Overbought → watch for sell setups
  • Below 20 = Oversold → watch for buy setups

Crossovers as Triggers

  • %K crosses above %D in the oversold zone = potential long entry
  • %K crosses below %D in the overbought zone = potential short entry

Divergence Spotting

  • Price makes higher highs but Stochastics makes lower highs = bearish divergence
  • Price makes lower lows but Stochastics makes higher lows = bullish divergence

Multi-Timeframe Testing

  • Use 5M or 15M Stochastics for intraday signals
  • Test higher timeframes (1H/4H) for trend filters in strategy development

Entry Filter Tool

  • Pair with liquidity sweeps, FVG zones, or session opens
  • Use as a confirmation layer rather than a primary signal

Pro Tip:

In FX Replay, use the Stochastic Oscillator to fine-tune your entries during backtests. It’s especially powerful when combined with:

  • Session-based setups (e.g., NY open)
  • Price action triggers (e.g., liquidity grabs)
  • Trend filters like moving averages or VWAP

Focus on confluence, not isolated signals, for higher trade probability.