Stochastic Stock Index Trading Strategy - How to Trade with Stochastic Oscillator indicator

Stochastic Oscillator is an oscillation indicator that estimates energy of a trading instrument.

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

Stochastic Oscillator displays the power of the current trends and it shows regions of over-sold & overbought levels.

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

Stochastic Oscillator is used to identify certain Indices trade chart patterns, like divergences.

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

Stochastic Oscillator gives more Index signals than other main momentum indicators, and these momentum indicators should be used together in combination with other indicators.

Stochastic Oscillator is made up of two lines one called the fast line and the other slow line. These two lines move in the direction of the price trend.

Learn Stochastic Indicator Technical Analysis

Stochastic Oscillator Indicator - Stochastic Oscillator Stock Indices Strategy

Get More Lessons and Topics:

Trade Forex Trading

Stochastic Stock Index Trading Strategy - How to Trade with Stochastic Oscillator indicator