How To Trade With Stochastic Oscillator Videos

Stochastic is a very important indicator that most pro traders use in their daily trading. We also use Stochastic in our trading system especially for finding regular and hidden divergences. 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. According to an interview with Lane, 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. You should try to become thoroughly familiar with this powerful oscillator if you want to use it in your trading system. Watch this video below that explains how to trade with Stochastic!

This is also a good video!

This video explains how you should optimize Stochastic for trading forex and futures!

This video shows how to trade with Stochastic!

Stochastic oscillator has got 4 variables. It is not necessary for you to memorize the formula that is used in this indicator. But it would be a good idea to take a look at the mathematical formula and try to understand what this formula is trying to calculate and how it can help you in making the right decisions in trading. Stochastics is measured with the %K line and the %D line, and it is the %D line that we follow closely, for it will indicate any major signals in the chart. Mathematically, the %K line looks like this:

%K = 100[(C – L5close)/(H5 – L5)]

This video shows how to trade the slow stochastic like a pro!

This video gives a stochastic day trading strategy!

This video explains how you should time your trades using stochastic!

This is a good video on how pro use stochastic in their trading! This is very important for you to understand that overbought doesn’t mean that you should go short and oversold doesn’t mean that you should go long. Stochastic can be overbought and price can still go up 100-200 pips. In the same manner, it can be oversold and still price can fall down 100-200 pips. So avoid making the mistake of buying and selling at the overbought and oversold levels.

This video explains how to find divergence on stochastic!