Volume is a very powerful indicator for evaluating trend strength and predicting the continuation and reversal of trends. Compared to indicators that are calculated using price and therefore act after price, the volume indicator precedes price and therefore can produce very strong trading signals and analysis.
Indicators are undoubtedly a very effective analysis and trading tools. They present signals in a very clear way and easy to understand and interpret. However, when combined with price action and chart reading they unfold their full profit potential. In this article you will learn how to use indicators to confirm trading signals and empower your chartists trading decisions.
The Stochastic Oscillator is a classical indicator, one of the few leading indicators available to traders. Its main strength is that it is based on Support and Resistance and therefore generates stronger signals than most indicators.
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