Traders trade trends, and no trading software is better at predicting short-term trends than VantagePoint. With its proprietary leading indicators, VantagePoint, leads the industry in trend forecasting. One of its more important and easy-to-use indicators is the Predicted Stochastic. This leading indicator can help you find and confirm potential trades, the trend changes, which gives you the all-important edge you need to be successful.
VantagePoint’s Predicted Stochastic is a momentum indicator. It predicts an overbought or oversold condition within a market one day in advance. The Predicted Stochastic plots two lines on a chart on a scale ranging from 0 to 100 (Predicted Stochastic and Stochastic Trigger). When the Predicted Stochastic line crosses the Stochastic Trigger line above 80 (overbought) or below 20 (oversold), this could be an indication that the trend in a market is about to change. The Predicted Stochastic is a leading indicator deriving from the position of the close relative to the high or low of the day. During periods of price increases or price decreases, the daily closes tend to accumulate near the daily highs or daily lows, respectively, thus the market condition is either overbought or oversold.
The normal Stochastic indicator tells you where the current trend might end or a new trend might begin, as it defines overbought and over sold conditions within a market. At some point, the flow of money will change, and it is the trader’s job to define that moment. The Stochastic indicator helps with this; however, the proprietary Predicted Stochastic indicator in VantagePoint takes the value of Stochastic to a higher level by predicting one day in advance when that trend change might take place. As any trader knows, to be successful trading markets, one has to have an edge, and the Predicted Stochastic in VantagePoint is one of many proprietary tools in VantagePoint that will give you that edge.