Stochastic Strategy - How to Trade with Stochastic Oscillator indicator
Stochastic Oscillator indicator is an oscillation indicator that gauges force of a Index trading instrument.
Stochastic Oscillator indicator is based on the idea that in an upwards market trend price action tends to close at the high of the price candle and during a downward trend the price action tends to close at the low of the price candlestick.
Stochastic Oscillator indicator shows the momentum of the current trends and it shows regions of oversold and overbought levels.
Stochastic Oscillator indicator is one of the most commonly used indicator, many Index traders act on stochastic signals hence the trade signals of this technical indicator become self predicting.
Stochastic Oscillator indicator is used to identify certain Index trading chart patterns, like 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 and generates more trading signals than the other main momentum indicators, and these momentum indicators should be used together in combination with other indicators.
Stochastic Oscillator indicator is comprised of 2 lines one called the fast line and the other slow line. These 2 lines move in the direction of the market trend.
Stochastic Oscillator - Stochastic Oscillator Strategy
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