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How To Use Graph Indicators - Updated 7/17/2014
7/21/12 - 8:04PM - 4 years ago - Last Edit: 7/18/14 - 2:00PM
Posted by: Snow
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Welcome to a tutorial covering how to use our STO indicator and what it means.

The STO indicator is used in 3 major aspects on Merchz:

1. On the live graphs, there is a short-term version of STO.
2. On the GE graphs, there is a long-term version of STO.
3. Via Tier 3, we use the GE STO indications to help find possible investments.

Depending on which of the above you are using the STO indication for, investment duration may vary but the idea behind why the indicator is used remains the same.

The STO indicator is what is known as an "oscillator," which is a type of indicator that operates under the assumption that prices rise and fall as a part of their nature. You can see this quite clearly in many of the RuneScape graphs, where items often fluctuate between highs and lows... or ceilings and floors.

The goal is to use the STO to determine whether an item is likely to rise or fall, based on history and its current stance. The STO indicator is just some math and a simple indicator, it is not something that sees the future, and it shouldn't be treated as such. You should always favor news and events over listening to what the STO is saying to do. Let's look at some examples.



Here, the indicators are all saying buy. This is because the current price is lower than it has been historically. As you can see, there are time frames before each of the "strong buy" messages. These time frames are how far back we are considering prices for. 3 days would be for a shorter-term investment. 6 days looks further back, for slightly longer, and 12 days looks even further back. It is a good idea to wait until all of these indications are positive, but you do not need to.

Let's look at another example:


Here we have the Divine spirit shield, which has been rising pretty heavily recently. All 3 indicators are saying that this is a "strong sell" situation... because the price has been rising what appears to be too much, making this a risky position to be in.

In the end, actual news, events, and updates will have a far greater impact on price movements than typical fluctuations. The STO indicator should just be used as a sort of filter, like what we do with Tier 3 VIP. Chances are, if the STO is saying "SELL" ... then it would not be a good idea to buy into that item, because it has already risen a substantial amount. Even if there is good reason for the rise, you are clearly getting on-board late. If the item is classified as a "BUY," then you should use your best logic to determine whether the item is just low and could easily rebound, or if there was recently an update or reason why the item has been in decline.

Hope that helps, feel free to ask more questions here on this thread if you have them.

-Founder of Merchz
#2541 7/17/14 - 8:32PM - 2 years ago - [quote]
Posted by: Snow
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Updated!
-Founder of Merchz
#2549 7/18/14 - 4:02PM - 2 years ago - [quote]
Posted by: elvolero
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nice guide but the sto is just for vip member? cause all item im searching about them give me N/A
#2550 7/18/14 - 4:07PM - 2 years ago - [quote]
Posted by: sam_here
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nice guide but the sto is just for vip member? cause all item im searching about them give me N/A
No the GE STO is for everyone, including guests. If you look at Divine spirit shield you'll see currently it has strong sells.
#2641 7/25/14 - 8:31PM - 2 years ago - [quote]
Posted by: MayzeBlade
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So pretty much if someone says 12 Days Strong Buy, its wise too invest in it?
#2707 8/3/14 - 6:07PM - 2 years ago - [quote]
Posted by: Kittiez
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Is it normal that the STO just say N/A ? c:
#2714 8/4/14 - 2:23PM - 2 years ago - Last Edit: 8/4/14 - 2:24PM - [quote]
Posted by: Snow
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So pretty much if someone says 12 Days Strong Buy, its wise too invest in it?
12 days strongbuy means in the span of 12 days, the price is just currently lower than it has been. That's really all the STO can help you with. From there, you have to discern whether it's that low simply due to inconsistencies in the market, OR if there's been some sort of update that has pushed the item down that far legitimately. I'd be less focused on letting the STO talk you into making a purchase than I would be in letting the STO talk you out of making one.

Is it normal that the STO just say N/A ? c:
Kittiez on 8/3/14 - 6:07PM

I see it says n/a on literally every GE item. That must be a glitch from the server move we did a couple days ago. Thanks for pointing this out, we'll get that remedied.
-Founder of Merchz
#2716 8/4/14 - 5:54PM - 2 years ago - [quote]
Posted by: Kittiez
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So pretty much if someone says 12 Days Strong Buy, its wise too invest in it?
12 days strongbuy means in the span of 12 days, the price is just currently lower than it has been. That's really all the STO can help you with. From there, you have to discern whether it's that low simply due to inconsistencies in the market, OR if there's been some sort of update that has pushed the item down that far legitimately. I'd be less focused on letting the STO talk you into making a purchase than I would be in letting the STO talk you out of making one.

Is it normal that the STO just say N/A ? c:
Kittiez on 8/3/14 - 6:07PM

I see it says n/a on literally every GE item. That must be a glitch from the server move we did a couple days ago. Thanks for pointing this out, we'll get that remedied.
Snow on 8/4/14 - 2:23PM
Thanks for replying >u<
#2813 8/17/14 - 6:49AM - 2 years ago - [quote]
Posted by: Rufoo
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How's it going with the glitch which causes N/A on all items? Any updates?
#2817 8/17/14 - 3:11PM - 2 years ago - [quote]
Posted by: Snow
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How's it going with the glitch which causes N/A on all items? Any updates?
Rufoo on 8/17/14 - 6:49AM

Not sure what's taking so long. I'll ask Sam_Here what's going on with it.
-Founder of Merchz
#2819 8/17/14 - 9:04PM - 2 years ago - [quote]
Posted by: sam_here
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How's it going with the glitch which causes N/A on all items? Any updates?
Rufoo on 8/17/14 - 6:49AM
Lame issue, should be set now .. Sorry about the delay.
#3603 6/4/15 - 5:53AM - 1 year ago - [quote]
Posted by: UncleJack
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what does it mean when it says hold instead of buy or sell
#3613 6/5/15 - 1:36PM - 1 year ago - [quote]
Posted by: Snow
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what does it mean when it says hold instead of buy or sell
UncleJack on 6/4/15 - 5:53AM
Hold means neither buy nor sell. It just means there is no suggestion for any action to take.
-Founder of Merchz
#3614 6/5/15 - 6:38PM - 1 year ago - [quote]
Posted by: UncleJack
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kk thanks man
#4481 4/11/17 - 2:13PM - 1 week ago - [quote]
Posted by: mstr0fcoin
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If a price is lower than it has been, but it says Strong Sell, what is the intended meaning?