What is Stochastic Oscillator? How to use for successful trading?

This is one of the most widely used indicator for stock trading. For a given time period if the stock is trending positively then it opens near its high and if its trading negatively then it opens near its low. So when this happens stochastic indicator has 2 values (%D & %K) to indicate whether to BUY or SELL. %K = 100[(C - L14)/(H14 - L14)] C = the most recent closing price L14 = the low of the 14 previous trading sessions H14 = the highest price traded during the same 14-day period. %D = 3-period moving average of %K The K line is the fastest and the D line is the slower of the two lines. When D line is above 80 it means the stock is overbought and it generates a SELL signal. If D line is below 20 then it is oversold & generates a BUY signal. Please click here to learn How to Trade with Stochasticsstochastics for trading