Analysis of Stochastic Oscillator Indicator

A lot of energies information can be gathered from the shapes and duration of the energies market tops and bottoms of the stochastic oscillator energies technical technical indicator.

The amount of time that the energies instrument stays overbought or oversold is an important factor when analyzing the strength of the energies market trends.

Energies Trading Market Tops

Narrow energies market top that does not reach very high above 80%

Narrow energies trading market tops means that the bulls are weak, and that the energies bears have overpowered the energies bulls very quickly. This means that the energies bears might push the energies price further down without much resistance from the energies bulls.

Very high, wide energies market tops

Wide energies market tops mean that the energies bulls are very powerful much more than the energies bears and the ensuing short term energies trend reversal (retracement), will be very short lived. The retracement on the stochastic oscillator energies technical indicator will not even reach the oversold areas before stochastic oscillator energies technical indicator moves back to the over bought levels.

Energies Trading Market Bottoms

A narrow energies market bottom that does not reach very deep below 20%

The narrow energies market bottom means that energies bears are weak in their attempt to push the energies price down, the energies bulls have gained control of the energies price pretty fast so the energies price movement upwards will continue for a while. And the upward energies market energies trend will continue for a while.

Very wide, deep energies market bottoms

A wide energies market bottoms is a sign that the energies bears are very strong and the energies sellers are in control of the energies price, therefore any retracement upwards will not stay for long.