Stochastic Oscillator Trading Strategies

• 3 Types of Stochastic Oscillators
• How Stochastic Oscillator Works
• Oscillator Overbought & Oversold Levels
• Analysis of Stochastic Oscillator
• Stochastic Crossover Signals
• Stochastic Oscillator Divergence Trading Signals
• Stochastics Trading System

Stochastic Strategy

Stochastic Oscillator indicator is an oscillation indicator that measures momentum of a forex trading instrument.

Stochastic Oscillator indicator is based on the idea that in an upward trend price action tends to close at the high of the price candlestick and during a downward trend price action tends to close at the low of the price candle.

Stochastic Oscillator indicator shows the strength of the current market trends & it shows regions of oversold & overbought levels.

Stochastic Oscillator indicator is one of the most oftenly used technical indicator, many traders act on stochastic signals hence the trading signals of this indicator become self predicting.

Stochastic Oscillator indicator is used to identify certain chart patterns, such as divergences.

Stochastic Oscillator indicator can give very early predictions of market price activity, thus Stochastic Oscillator indicator is a Leading indicator.

Stochastic Oscillator indicator gives more trading signals than other main momentum indicators, and these momentum indicators should be used together with other technical indicators.

Stochastic Oscillator indicator is comprised of two lines one called the fast line and the other slow line. These 2 lines move in direction of the trend.

Stochastic Oscillator - Stochastic Oscillator Strategy