There are two most important formulae used in Juno Markets to calculate the profit or loss and the cost of an asset over a given timeframe. These formulae are Relative Strength Index and the Stochastic Oscillator. The Relative Strength Index helps to gauge the speed and price fluctuations for any given underlying security.The formula used here is simple which is RSI = 100 – 100 / (1 + RS). Here,RS is equal to the quotient of average gain during X timeframe and average loss in the same timeframe.This formula will help you a lot to know about the position of the asset.
The Stochastic Oscillator
On the other hand, if you want to know the closing price of the asset then you must use the Stochastic Oscillator. It will compare the closing price of any asset with the average prices of the same asset for different specific timeframe.Here the formula used is %K = 100(C – L14)/(H14 – L14). You can go through the Juno Markets review to understand the different terms of this formula. Here, Cindicates the latest closing price, L14 indicates the minimum of the last 14 trading sessions and H14 indicates the maximum of the same. While %K indicates the current market rate of the asset and %D signifies the three-period moving average of %K.
Winning or losing trade
These formulae will help you a lot in closing a winning or losing trade. With the formulae in hand you will know the right time to close a trade for the maximum benefit in the short as well as in the long term. Ideally, these formulae are very useful tools that will help you to overcome any trader block at any given time. therefore, knowing these two formulae is very important.