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:
- Open the Indicators panel.
- Search for “Stochastic Oscillator” or “Stochastics”.
- Use the default settings (%K = 14, %D = 3) or adjust as needed for your strategy.
- 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.