pullbacks. The direction of the trend is determined on the basis of
the exponential moving average (EMA) and expected depth of the
pullback on the Stochastic indicator. To determine the trend I choose
the EMA indicator because it smoothes the price movement, eliminates
local fluctuations and places greatest weight on the most recent data.
The stochastic indicator is a momentum oscillator which shows
overbought (values above 80)…