The fast, slow and full stochastic

The fast, slow and full stochastic

Oscillators work on the premise that markets tend to over extend
themselves on both sides of the scale. Whether these extreme conditions
are described as overbought or oversold (momentum), strength (trend) or
something else, it is when these extremes are reached that
it is assumed the market is in a position to begin a correction (minor
or major). These extreme values in oscillators tell us when to be
watchful of the ever dreaded and inevitable trend reversal.

Oscillators also give us information about the general trend. As trend
analysis works with
the price line, trend analysis is also a valuable part of analyzing an
oscillator. This is where part of the "predictive" abilities of
oscillators are seen. These events are also known as convergences and
divergences. This is when the trend of the oscillator has broken before
the price trend, and they are no longer moving in parallel.
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