Stochastic Stock Strategy - How to Trade with Stochastic Oscillator indicator

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

Stochastic Oscillator indicator is based on the idea that in an upwards trend price action tends to close at the high of the price candlestick & during a downwards trend price action tends to close at the low of the price candlestick.

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 commonly used technical indicator, many traders act on stochastic signals hence the Stock signals of this indicator become self predicting.

Stochastic Oscillator indicator is used to identify certain Stock Indices trade 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 Stock signals than other main momentum indicators, and these momentum indicators should be used together with other technical indicators.

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

Stochastic Oscillator Technical Indicator - Stochastic Oscillator Stock Indices Trade Strategy