Comments on: The Stochastic Oscillator- A Momentum Technical Indicator https://www.thebluecollarinvestor.com/the-stochastic-oscillator-a-momentum-technical-indicator/ Learn how to invest by selling stock options. Sat, 02 Jun 2018 11:42:07 +0000 hourly 1 By: Technical Analysis Impacting Stock Eligibility for Option-Selling | The Blue Collar Investor https://www.thebluecollarinvestor.com/the-stochastic-oscillator-a-momentum-technical-indicator/#comment-166240 Sat, 02 Jun 2018 11:42:07 +0000 /blog/?p=4351#comment-166240 […] momentum indicators (MACD Histogram and Stochastic Oscillator) turned […]

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By: Special 1-Time Cash Dividends for Stocks with Improving Technicals | The Blue Collar Investor https://www.thebluecollarinvestor.com/the-stochastic-oscillator-a-momentum-technical-indicator/#comment-113567 Sat, 01 Jul 2017 10:47:35 +0000 /blog/?p=4351#comment-113567 […] average crossover (red arrow) in December and bullish signals coming from the MACD histogram, stochastic oscillator with volume confirmation (green circles). Now, of note are the major whipsaws present in this […]

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By: Alan Ellman https://www.thebluecollarinvestor.com/the-stochastic-oscillator-a-momentum-technical-indicator/#comment-54984 Thu, 21 Jul 2016 20:07:24 +0000 /blog/?p=4351#comment-54984 In reply to Terrence Blackburn.

Terrance,

We have a bullish moving average indicator, a neutral MACD histogram and a slightly bearish stochastic oscillator. I would put a heading of “mixed technical picture” here and sell ITM strikes in an neutral to slightly bearish market environment and consider OTM strikes in a strong bull market. I would not eliminate this stock as a candidate based on the current technical picture with the caveat that technical analysis is as much an art as it is a science and is open to interpretation but I’m happy to share mine.

Thanks for this excellent example.

Alan

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By: Terrence Blackburn https://www.thebluecollarinvestor.com/the-stochastic-oscillator-a-momentum-technical-indicator/#comment-46151 Mon, 23 May 2016 08:28:00 +0000 /blog/?p=4351#comment-46151 Alan,

http://stockcharts.com/c-sc/sc?s=FIS&p=D&b=5&g=0&id=p78774021203

Would you consider this a “no go” because:

1 The MACD is negative.
2. The SLO STO is below the trigger line.

??

Or…

Would (since they are barely “negative”), watch it, because:

1. 20Day EMA is above 100Day EMA.
2. Price is above 20Day EMA.
3. At this time their is positive volume.

Thanks in advance

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By: Adrian https://www.thebluecollarinvestor.com/the-stochastic-oscillator-a-momentum-technical-indicator/#comment-5947 Wed, 30 May 2012 08:16:07 +0000 /blog/?p=4351#comment-5947 Thanks for the answers given above, as it helped me understand using this indicator better. I tried to get the trigger line off stockcharts chart but it wouldn’t work, I may have to try this again later on the free software chart I had used, but when ready to. It’s just as well we don’t need to see the slow stochastics on multiple timeframe charts, as I was going to send another complex question relating to the positions of its use when timing trades!

I will read the books now and try get some more questions answered.
( I also left one under recent article of buyback of options.) thanks

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By: Alan Ellman https://www.thebluecollarinvestor.com/the-stochastic-oscillator-a-momentum-technical-indicator/#comment-5935 Mon, 28 May 2012 16:31:06 +0000 /blog/?p=4351#comment-5935 In reply to Adrian.

Adrian,

Keeping in mind that there are many approaches as to how to technically analyze a price chart, I’m happy to share my approach:

1- I agree that the trigger for the stochastic oscillator is NOT needed and can be eliminated from your chart parameters.

2- Since we are utilizung short-term time frames for our two confirming momentum idicators (MACD histogram and stochastic oscillator) I belive that it is NOT necessary to examine additional time frames for our 1-month covered call positions.

3- If the price has broken the 20-d ema on high volume in a bullish market environment I would have no problem using an OTM strike. I use the technical parameters of the stock and the market in general to form a mosaic that will dictate investment decisions. If the chart is bullish, the confirming indicators mixed in a bearish market, I tend to favor ITM strikes. I look at the entire picture and then make my decisions.

Alan

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By: Adrian https://www.thebluecollarinvestor.com/the-stochastic-oscillator-a-momentum-technical-indicator/#comment-5915 Sat, 26 May 2012 05:13:32 +0000 /blog/?p=4351#comment-5915 Alan, I first wanted to say that I hope you agreed on what I wrote above and under the “support/resistance heading”- as this is now what I have to come to believe!

I just wanted to finish up with 3 final questions on this topic. The last one is a little complex as I once told you, – but all should help me immensely.
– So you had responded with that you “do NOT use the trigger (3-day simple moving average)”, so if this be the case then shouldn’t I take this off of my share charts altogether?( be easier I thought)
– I am wondering if you think I could use a dual(or triple) momentum strategy on ‘just’ the slow stochastics indicator? (The reason I ask is because I have read a trading book from an author(called ‘Robert Miner’ – don’t know if you had heard of him?) who does this using 2(or 3) different timeframe charts, and thinks it makes higher probability trades with cutting down exposure also.) What do you think about this type of analysis for covered calls?
– And if the price breaks above a 20d EMA(or short downtrend line) to reverse trend up, yet the slow stochastics hasn’t crossed above the ’20’ mark – then would you wait for it to go above ’20’ before putting on a trade?,- is this a mixed signal for you, where you now would sell an ITM option – even though price is going up.(opposite also for breaks below a 20d EMA / trendline.)?

Hope you can help me again with some answers.
(ps. I have received the 2 books I ordered from you and am soon going to read them!) thanks

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