How To Trade With Stochastic Oscillator?

2 January 2017, 16:25
Ahmad Hassam

Stochastic Oscillator is ideal for divergence traders.

Stochastic oscillator shows overbought and oversold conditions.

But if you will try to trade overbought and oversold conditions, you will get yourself burned.

Stochastic can stay in an overbought/oversold condition for an extended period of time.

So you never know when the trend is going to change.

However if you use Stochastic for divergences, you can catch trend changes.

Read this blog post that explains how you are going to trade with Stochastic Oscillator.

Stochastic works in all markets. The problem is false signals.

As long as you don't learn how to filter false signals, you will lose more than you win.

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