This is part 1 of a 2 part video tutorial about using the Stochastics indicator for trading. In this video the narrator is first covering basic understanding of the Stochastic Oscillator and how to use it with uptrends, downtrends, trading sideways or flat, and more. The Stochastic Oscillator is intended to show momentum of the market, not price or volume. Momentum typically changes before price and volume so it is an absolute must of an indicator for every binary options trader’s chart.
I personally overlay it on top of my volume indicator in a separate indicator section, not on top of my price action, moving average, and bollinger bands chart because when the Sto is paired with the volume it is a lovely thing to watch and compare with whatever is going on on the main candle chart.
I have found that a properly set & optimized Stochastic indicator (I use 8, 3, 3 settings) can be a 60 Second Trade dream, when info is compared & confirmed against your other chart indicators. Watch the Sto & volume, check the price action for trend confirmation or possible fake outs (great video on spotting reversals & fake outs here on the site), and then flip over to your 60 Second Trading platform and judiciously go to town!