Stochastic Oscillator Complete Trading Guide
The Stochastic Oscillator is a momentum indicator that is designed to give you an objective measure of the momentum in your trading instrument.
It’s bounded by the numbers 0 and 100 and will oscillate between those two areas.
It will show you the relationship of the closing price to the high low range of N periods of time. The default lookback is 14 periods.
The lines on the Stochastic indicator (trigger and signal line) moves up and down, it does not always track price movement. As with any technical analysis trading indicator, the Fast or Slow Stochastic Oscillator is only a tool and should only be used as part of an overall trading strategy.
I’m not going to draw a conclusion for you as to the effectiveness but will cover how you can trade with the Stochastic Oscillator and it applies to all versions of the indicator.
The Stochastic Oscillator is a momentum indicator that is designed to give you an objective measure of the momentum in your trading instrument.
It’s bounded by the numbers 0 and 100 and will oscillate between those two areas.
It will show you the relationship of the closing price to the high low range of N periods of time. The default lookback is 14 periods.
The lines on the Stochastic indicator (trigger and signal line) moves up and down, it does not always track price movement. As with any technical analysis trading indicator, the Fast or Slow Stochastic Oscillator is only a tool and should only be used as part of an overall trading strategy.
I’m not going to draw a conclusion for you as to the effectiveness but will cover how you can trade with the Stochastic Oscillator and it applies to all versions of the indicator.
