Stochastic Strategy - How to Trade with Stochastic Oscillator indicator

Stochastic Oscillator indicator is an oscillation indicator that measures momentum of a Stock Indices trading 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 candlestick and during a downward trend price action tends to close at the low of the price candlestick.

Stochastic Oscillator indicator shows the strength of the current market trends and it shows regions of oversold and overbought levels.

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

Stochastic Oscillator indicator is used to identify certain Stock Index trading chart patterns, such as divergences.

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

Stochastic Oscillator indicator gives more signals than other main momentum indicators, & these momentum indicators should be used together with other indicators.

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

Stochastic Oscillator Indicator - Stochastic Oscillator Strategy