Trading indicator match made in heaven - Using Stochastics and Weighted Moving Average

For awhile the only indicates I used for trading were volume, weighted moving average, and swing index. I was able to make some good trades, but it felt like I was missing out on some valuable information which caused me to do some research into different trading indicators, when I came across the Stochastic indicator.  The stochastic is a momentum indicator which is used to compare the closing price of a security to the range of prices over a period of time.  This is very useful as it can allow you to make decisions upon information such as whether or not an asset or in this case, cryptocurrency , is overbought, oversold, and which was the market is moving. However just using this indicator on it's own can lead to making decisions, as if you look at the chart of a particular security or asset you will notice that overtime when the stochastic may indicate an asset is likely to be sold, the asset ends up drastically increasing in price and vice-versa. That is why it is important to pair it up with an indicator like the WMA (Weighted Moving Average) and different stochastic analysis methods to help you properly interpret stochastic information.

If you wish to learn more about Stochastic and different stochastic analysis strategies i recommend viewing the following two websites:

• https://tradingsim.com/blog/slow-stochastics/
• http://www.investopedia.com/articles/technical/073001.asp