Dynamo Stochastics - VertexFX


Master Trader
May 8, 2014
The Dynamo Stochastic is similar to Stochastic Oscillator, but it is a little more sensitive. It can be used for divergence trading like the stochastic oscillator. Oscillator values above 70 indicates overbought markets and price move is likely to loss momentum when oscillator breaks above 70. Oscillator below the 30 level indicates oversold market condition.

The Dynamo stochastic can be used like the Stochastic Oscillator. It can identify Oversold, Overbought market conditions. Divergence between price and the oscillator is a good indication of short term trend reversal.