Stochastic oscillator is a crossover oscillator indicator. Being a crossover oscillator indicator, stochastic oscillator was created by  George Lane with the main objective of helping traders to know whether the market is in an overbought or oversold condition. As a crossover oscillator indicator, it oscillates between 0.00 to 100 and has two crossover lines, the stochastic oscillator(blue in color) and the signal line( red in color). For oversold,the crossover occurs at below 20 while for overbought it occurs at above 80. 
According to George Lane  , the values of stochastic oscillator is gotten from the formula below;
 
 
Furthermore,the oversold and overbought market condition for using stochastic can further be explained as follows;
 
1.Stochastic oscillator cryptocurrency oversold
 
Since stochastic oscillator is a crossover oscillator indicator with two crossovers, the stochastic oscillator and the signal line ,it therefore follows that when the stochastic oscillator crosses above the signal line at below 20,that will be an indication of an oversold market condition thus signaling the cryptocurrency trader to purchase a given amount of cryptocurrency with their USDT balance. The cryptocurrency trader can either place a market buy order which will be processed immediately or they can place a limit buy order which will be processed when the market reaches their buy limit order. This is indicated as from the candlesticks chart below;
 
 
 
The above represents the market for TRX in terms of USDT. From the chart, three points are being indicated. There is point A, B and C. Point B is the stochastic oscillator while point A is the signal line. Point C on the other hand is the crossover point. At point C,the stochastic oscillator has crossed above the signal at below 20 thus an indication of an oversold condition over there. This signals the cryptocurrency trader to purchase a given amount of TRX with their USDT balance. The cryptocurrency trader can either place a market buy order which will be executed immediately or they can place a limit buy order which will be processed when the market reaches their limit buy order .When their order is being executed,the account of the cryptocurrency trader will start increasing in value if the market is moving upward
 
2.Stochastic oscillator cryptocurrency overbought
 
Since stochastic oscillator is a crossover oscillator indicator with two crossovers, the stochastic oscillator and the signal line ,it therefore follows that when the stochastic oscillator crosses below the signal line at above80,that will be an indication of an overbought market condition thus signaling the cryptocurrency trader to sell a given amount of cryptocurrency which he had previously purchased and is currently holding. The cryptocurrency trader can either place a market sell order which will instantly be processed or a limit sell order which will be processed when the market reaches their limit sell order price.This is indicated as from the chart below;
 
 
 
The above represents the market for TRX in terms of USDT. From the chart, three points are being indicated. There is point A, B and C. Point B is the stochastic oscillator while point A is the signal line. Point C on the other hand is the crossover point. At point C,the stochastic oscillator has crossed below the signal at above 80 thus an indication of an overbought condition over there. This signals the cryptocurrency trader to sell a given amount of TRX which he had previously purchased and is currently holding to prevent their account from declining in value. The cryptocurrency trader can either place a market sell order or a limit sell order .The market sell order will be processed immediately while the limit sell order will be processed when the price in the market reaches their limit order .When the order is being processed,the account of the trader will increase in value in terms of USDT.
 

Cryptocurrency market is a highly volatile market. As a cryptocurrency trader,whenever you place a buy order,always make sure to apply risk management so that whenever your buy order goes against you, your account do not depreciate so much in value.

 

To receive our post directly to your telegram, then you can join our telegram channel from below

t.me/TeacherForexSchool

 You can also join our telegram group to be able to comment on our channel post or support us over there .You can as well share your trading idea and market idea for both fiat and cryptocurrency and be able to be supported by other community member over there on the group with crypto. Here is the link to our telegram group

https://t.me/joinchat/DUNfZg9fTQttyxxGuNKAbg

You are always free to support our work from below;

skrill donation :[email protected]com

Neteller donation :[email protected]com

Bitcoin:3AFeiwUp6erj2iRBmdsnc7YhC7gcYVD6oj

Ethereum; 0x346570c491b76c7cd51699bdd272762111b743a9

Litecoin: LeEH7B82ccXJ6QoibCryGJNpDGNx2x77fL

Dogecoin: DLShs2vqhMc1ggqo8MPPMBTcPAZdqCZoWd

 

lightning network:tipping.me:https://tippin.me/@quintomudigo

 

  XRPtIPBOT: in all platform: username is: quintomudigo