Worden Stochastics
Candlefocus EditorA reading of greater than 80 is considered overbought while one of less than 20 is considered to be oversold. The advantage of using Worden Stochastics over other technical analysis indicators is that it places more focus on the recent closing value as opposed to the past price movements.
Unlike other stochastics, the Worden Stochastics does not display crossovers that trigger buy and sell signals. Since the indicator does not provide any critical information about future trends, it is often used in combination with other technical analysis indicators such as relative strength index (RSI) and moving average convergence divergence (MACD).
Worden Stochastics is a valuable technical analysis tool that can help traders identify potential buy and sell opportunities. While other stochastic indicators focus on long-term trends, the Worden Stochastics is best suited to short-term fluctuations. This indicator helps traders spot overbought or oversold conditions and helps them identify potential trading opportunities. It also allows traders to identify any existing trends, as well as any potential reversal or continuation of these trends.