23. How to Trade Stochastics Like the Pro’s Do

www.informedtrades.com — Home of the largest free university for traders A lesson on how to trade the stochastic oscillator for active day traders and investors using technical analysis in the stock market, forex market. and futures market. In our last lesson we learned about the RSI indicator and some of the different ways traders of the stock, futures, and forex markets use this in their trading. In today’s lesson we are going to look at another momentum oscillator which is similar to the RSI and is called the Stochastic. Let me start by saying that there are 3 different types of stochastic oscillators the fast, slow, and full stochastic. All of them operate in a similar manner however when most traders refer to trading using the stochastic indicator they are referring to the slow stochastic which is going to be the focus of this lesson. The basic premise of the stochastic is that prices tend to close in the upper end of their trading range when the financial instrument you are analyzing is in an uptrend and in the lower end of their trading range when the financial instrument that you are analyzing is in a downtrend. When prices close in the upper end of their range in an uptrend this is a sign that the momentum of the trend is strong and vice versa for a downtrend. The Stochastic Oscillator contains two lines which are plotted below the price chart and are known as the %K and %D lines. Like the RSI, the Stochastic is a banded oscillator so the %K and %D lines
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11 thoughts on “23. How to Trade Stochastics Like the Pro’s Do

  1. Secret to profitable trade on Forex! Profit 150-200 % at month!
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  2. Secret to profitable trade on Forex! Profit 150-200 % at month!
    goodzarabotok.mybb.ru (RU)
    mastertrader.topbb.ru (EN)
    Trade Strategy LSFA BS (Banking system)! Always pleased to help!
    Vladimir-Anatolevich08@yandex.­ru
    Respectfully yours,
    Vladimir Anatolievich

  3. Secret to profitable trade on Forex! Profit 150-200 % at month!
    goodzarabotok.mybb.ru (RU)
    mastertrader.topbb.ru (EN)
    Trade Strategy LSFA BS (Banking system)! Always pleased to help!
    Vladimir-Anatolevich08@yandex.­ru
    Respectfully yours,
    Vladimir Anatolievich.

  4. ✔ ✔ thank you for the helpful video! I am using a free trend indicator, which displays very profitable buy/sell signals. See it yourself on my page, worth a try! Cheers ✔ ✔

  5. The secret to trade on Forex! What earn 100 000 – 120 000 USD at month and more! Without indicators!
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  7. I like using the stoch oscillator myself with MACD to find divergence with the bullpips method (search “bullpips” for info) and they perform very well together.

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