Stochastic Oscillator Forex Trading Strategies

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

Stochastic Trading Strategy

Stochastic Oscillator indicator is an oscillation indicator that measures momentum of a forex trading instrument.

Stochastic Oscillator indicator is based on the idea that in an upward forex trend price action tends to close at the high of the forex trading price candlestick and during a downward forex trend price action tends to close at the low of the forex trading price candle.

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

Stochastic Oscillator indicator is one of the most oftenly used technical indicator, many Forex traders act on stochastic signals hence the forex signals of this indicator become self predicting.

Stochastic Oscillator indicator is used to identify certain forex chart patterns, such as divergences.

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

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

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

Stochastic Oscillator Indicator - Stochastic Oscillator Trading Strategy