Stochastic Oscillator Strategy

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

Stochastic Strategy

Stochastic Oscillator indicator is an oscillation indicator that measures momentum of a crude oil.

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

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

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

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

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

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

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

Stochastic Oscillator Crude Oil Indicator - Stochastic Oscillator Strategy