Stochastic indicator allows trader to measure saturated condition of buyer (overbought) and saturated seller (oversold) in forex market. The indicator is calibrated from 0 to 100. And, if the stochastic line is above the 80 mark, it indicates that the currency pair is at the buyer's saturation point. Or, if the stochastic line is below the 20 mark, it indicates that the currency pair is at the saturation point of the seller. Thus, 20 and 80 marks are called "trigger points". It is important to note that the basic guideline when using stochastic to identify trading opportunities in the market is to enter a long (buy) position when the stochastic line is below the 20 mark and enter the short (sell) position when the stochastic line is above the 80 mark. For example, when the indicator has been overshadowed above the 80 mark occasionally, then it is very likely that the downside reversal is imminent.