Technical Analysis of Stochastic Oscillator Gold Trading Indicator

A lot of gold trading information can be gathered from the shapes and duration of the gold trading market tops and bottoms of the stochastic oscillator gold trading indicator.

The amount of time that the gold trading instrument stays overbought or oversold is an important factor when analyzing the strength of the gold trading market trends.

Gold Trading Market Tops

Narrow gold trading market top that does not reach very high above 80%

Narrow Gold trading market tops means that the bulls are weak, and that the gold trading bears have overpowered the gold trading bulls very quickly. This means that the gold trading bears might push the gold trading price further down without much resistance from the gold trading bulls.

Very high, wide gold trading market tops

Wide gold trading market tops mean that the gold trading bulls are very powerful much more than the gold trading bears and the ensuing short term gold trading trend reversal (retracement), will be very short lived. The retracement on the stochastic oscillator gold trading indicator will not even reach the oversold levels before the stochastic oscillator gold trading indicator moves back to the overbought levels.

Gold Trading Market Bottoms

A narrow gold trading market bottom that does not reach very deep below 20%

The narrow gold trading market bottom means that gold trading bears are weak in their attempt to push the gold trading price down, the gold trading bulls have gained control of the gold trading price pretty fast so the gold trading price movement upwards will continue for a while. And the upward gold trading market gold trading trend will continue for a while.

Very wide, deep gold trading market bottoms

A wide gold trading market bottom is a sign that the gold trading bears are very strong and the gold trading sellers are in control of the gold trading price, therefore any retracement upwards will not stay for long.