Stochastic Oscillator Forex Trading Strategies

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

Stochastic Forex Trading Strategy

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

This indicator is based on the idea that in an uptrend price action tends to close at the high of the candlestick and during a downtrend price action tends to close at the low of the candlestick.

This indicator shows the strength of the current trends and it shows regions of oversold and overbought levels.

This Oscillator is one of the most commonly used technical indicator, many Forex traders act on stochastic signals hence the signals become self predicting.

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

Stochastic Oscillator can give very early predictions of market activity, thus it is a is a Leading indicator. This indicator gives more signals than other main momentum indicators, and they should be used together with other technical indicators.

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

Stochastic Oscillator Indicator