Stochastic Oscillator Stocks Methods

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

Stochastic Strategy

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

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 candlestick.

Stochastic Oscillator technical indicator shows the strength of the current market trends and 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 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 signals than other main momentum indicators, and these momentum indicators should be used together with other technical indicators.

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

Stochastic Oscillator Indicator - Stochastic Oscillator Strategy Method