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Low N or L14 is the lowest price of the asset over the N period to be studied. High Nor H14 is the highest price of the asset over the N period to be studied. This is one of the oldest indicator, invented in 1950 by Dr. This is a momentum indicator that compares the closing price of an asset with its price range, the low and high range over 14 periods of time. George Lane, and its main function is to guess or predict the future price of an asset or commodity. Two lines are used to draw the stochastic oscillator over a price chart to identify a possible price turning point and predict the future movement of it. What is Stochastic Oscillator? This oscillator can get a numeral value from 1 to 100. The price is going to decrease. The Stochastic Oscillator value will determine the market condition and it is best to identify an overbought or oversold condition as well as trend reversals point.

Stochastic, which is the line that tracks the current market rate for the asset pair. You can read more about Parabolic SAR Indicator HERE. We have allready write articles about Parabloic SAR before please check it.