Question: What is a trading strategy with the Stochastic Oscillator?

Question: What is a trading strategy with the Stochastic Oscillator?

Answer

One of the most trusted Stochastic Oscillator trading strategies is known as Twin Peaks. It got this name because it looks for a double top or a double bottom in the oscillator. A double top above the zero line followed by a red area is bearish, while a double bottom below the zero line followed by a green area is bullish. This strategy can also be enhanced by using a trend line. In the bearish scenario, a trendline is drawn down from the highs and when the oscillator crosses above this trendline, a buy signal is triggered.