 In today's video, I will share with you one of the simplest and yet very very effective trading strategy with this app of ours. These two technical analysis strategies are very simple to use even for complete beginners. And many traders have used these two technical analysis indicators to profit across different markets. Make sure you watch this video till the end because I will be using different charts to break down for you step by step how you can do it too. Hi everyone, my name is Chloe and welcome back to my channel. The only one place for you to learn our stocks investing as well as different ways to generate multiple strings from income. Let's start by first adding this indicator into the Octa Trading app. Under the indicator tab, look for store casting. Wait, before that, let me share with you a little bit more about Octa. A global broker that offers a wide range of trading options, whether you are into stocks, commodities or indices, they've got 230 choices for you. Octa Trading app can help you to get super low spreads and there are no sneaky commissions or swaps into your profits. But wait, there's more. If you're new to all these trading stuff, they've got a lot of educational materials in different languages, from live trading sessions, market analysis, and useful trading tips. Plus, they've got a demo account that you can test out with virtual money. Perfect for practicing without risking your hard-earned cash. They have solid customer service too. Need help at 3am? No problem. Their support team is there 24-7 to answer all your questions. Handling your money is a breeze at Octa. Deposit takes just a minute and withdrawal rolls are under 49 minutes even faster than your food delivery. So if you're ready to kickstart your trading journey safely, keep the link in the description or scan this QR code to download Octa Trading app. My promo code Aligato allows you to double your deposit for trading. Now let's get back to the video. Now let's delve into the first indicator in store casting. Exactly what is that and how you can use it. The store casting indicator is a short-term momentum indicator that compares the current close with the highest and the lowest close over a set period. Typically, the default period is 14, indicating the current candle's position in relation to the last 14 candles. The indicator consists of two lights, the blue K percentage line and the orange D percentage line. The blue line represents the actual value of the store casting, while the orange line is the three period moving average of the blue line. Later on, I will also share with you how we can use these two lines to enter and exit your positions. Beside these two lines, there's also a marked zone in the middle of the indicator, ranging from the 18 and 20 level. Similar to RSI, the store casting indicator identifies overbought and oversold region. If you are wondering what the RSI indicator is, I share about this in my previous video over here, so make sure you go and check it out too. So now let's use the author app to look into how you can use it to enter and exit your trade using store casting. The first thing to look out for is the overbought and oversold region. If the value is above 80, it suggests that currently it's in the overbought area, suggesting that the market could be too optimistic towards the underlying asset. Such scenario is usually followed by falling prices because when the market realize that the price is too high, they will start to sell. As you can see from the chart over here, the index subsequently fell by 7% after the store casting reaches the overbought area. On the other hand, when store casting reaches 20, it also means that it reaches the oversold region, hinting that right now the market could be too pessimistic, resulting in the asset price reaching the oversold region. As a result, value buyers will start to emerge and when they start buying, the prices will get pushed up. As you can see from the chart over here, once store casting reaches the oversold region, the prices start to go up. However, there are certain limitations in terms of just looking at store casting oversold and overbought. As you can see, there are situations that the prices continue to go up despite reaching the overbought region. So if you took profit at the first sign of overbought, you actually miss out another 5% gain as the market continues to trend upwards. Worse, if you decide to short the market when the market reaches the overbought region, your trades could end up losing money too. Vice versa, it will also be incomplete to enter your bullish trade just because the market reaches the oversold region. Because despite reaching the oversold, the prices could continue to go down just like what happened back in the 2020 March COVID-19 period, the stock price fell by another 8% despite reaching the oversold region. That's why apart from just looking at the oversold and overbought region, we should also look into the two lines using the store casting, which is the K and D line cross over. Now, before I share a little bit more about how you can use K and D line crossover, if you like this video so far, make sure you give it a thumbs up, subscribe and hit the notification button so that you will not miss out any future updates that I have in my channel. Also comment down below what kind of indicators are you currently using for your trades as well. Now let's take a look at how we can use this K and D line crossover to enter and exit our trade factor. Firstly, when the blue K% line crosses above the orange D% line, it generally indicates that the market is going to go up. For example, in this chart, once the blue line crosses above the orange line, the market went up 4% and 10% respectively. Vice versa, when we look at the other scenario, when the blue line crosses below the orange line, the market generally starts to fall. As with the chart over here, the index fell by 7% when the blue line starts to cross below orange line. But by now, you might be thinking, hmm Chloe, there are certain times that despite of the crossover, the market continues to trend further instead of reversing. What's happening? Does it mean that it's a false signal? You are absolutely right. By right, the stock price over here should be dropping after the blue line crossed below the orange line. However, instead of dropping, it actually went up. That's why we need to combine what we have learned so far in totality so that we can make a more accurate prediction of the stock price movement. So right now, let's combine. So what we truly want to look out for from stochastic is the crossover after it reaches the oversold or overbought region. Now let's take a look at some more examples. With this chart, instead of buying at the first side of oversold or overbought, or line crossover in late September, which was actually a false signal, we should only initiate our bullish trade in early October, when the blue line cross above the orange line inside the 2018 event. Because it represents a stronger indication that the upward momentum is going to continue. And right after, the price went up. Conversely, we should only enter our sell position when the crossover happens after the oversold region is reached. And in this case, the bearish trade can be entered in early August, when the blue line cross below orange line within the 2018 region. Of course, no indicators is foolproof. That's why it's always good to combine different indicators so that to increase the profitability of your trade. For myself, I always like to combine stochastic with MACD. Think of MACD as your market detective. It's like having a special tool that can help you to support the potential trend reversal. I talked in-depth about how to use MACD in my previous video over here. On top of that, I also shared two additional indicators in this video. So if you want to have a deeper understanding of different technical analysis indicators, then make sure you check out the video over here. So now let's add MACD into the October trading app, go to the indicator tab and select MACD. Now let's interpret MACD and stochastic all in one chart. What we want to look out for is, after the stochastic blue line cross above orange line within the 2018 region, for example in August over here, then we look at does MACD give us any sign of potential trend reversal. Indeed, at that time, MACD was showing light pink and it's also soaking up, showcasing that the bearish momentum is actually getting weaker and bullish momentum is on the way of coming back. So right after that, the stock price started to rebound. The same can be applied to spot bearish trends. For example, in this chart over here, the stochastic has reached the overbought region. At the same time, MACD started to show its first red bar, indicating that the bearish momentum is coming back. And then afterwards, the prices start to fall. In a nutshell, MACD helped you to see when the trend might be changing direction while stochastic helps you to see things that might be getting too extreme with buying and selling. So using the blue and orange line crossover, you can better enter and exit your trades with higher certainty. Remember though, all these indicators aren't foolproof. There's no tool that can guarantee you 100% accuracy. That's why it's so important to do position sizing. The key is to learn to use them effectively while managing your risk at the same time. On top of these two indicators, there are also many different indicators that you can use inside of the trading app, including Ichimoku Cloud, moving averages, RSI and more. So when you are entering your trade, it's good to look at different indicators to increase your chances of success. Also, do understand that forage trading carries risks as well, so make sure you learn how to do it effectively before embarking your journey. And the good thing is, OPPA starts providing demo accounts for you to practice first before you get started your real trades. So if you want to get started your trading journey, do consider signing up your account with OPPA and access all the free tools that they provide for you. All to do is to open your account via my link in the comment section below. You can also join my Telegram channel over here to get more additional stock investing updates. Until next time, happy trading and I will see you in the next video. Arigato!