Stochastic Oscillator


Developed by George C. Lane in the late 1950s, the Stochastic Oscillator is a momentum indicator that shows the location of the close relative to the high-low range over a set number of periods.

The Stochastic Oscillator “doesn’t follow price, it doesn’t follow volume or anything like that. It follows the speed or the momentum of price. As a rule, the momentum changes direction before price.” As such, bullish and bearish divergences in the Stochastic Oscillator can be used to foreshadow reversals. This Ebook will teach you how:

To interpret the readings of Stochastic Oscillator
To derive signals from the line crossovers
To distinguish between false and real signals
To stop divergences
To combine it with other technical studies


5. Preview_Stochastic Oscillator

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