Stochastic Strategies

• 3 Types of Stochastic Oscillators Indicators
• How Stochastic Indicator Works
• Oscillator Overbought and Oversold Levels
• Analysis of Stochastic Oscillator
• Stochastic Crossover Signals
• Stochastic Divergence Signals
• Stochastics System

Stochastic Strategy

Stochastic Oscillator indicator is an oscillation indicator that measures momentum of a 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 candle and during a downwards 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 signals of this technical indicator become self predicting.

Stochastic Oscillator indicator is used to identify certain 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 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 market trend.

Stochastic - Stochastic Oscillator Strategy