Double Stochastic Indicator
The Double Stochastic Indicator is a technical analysis tool that comprises two Stochastic Oscillators, typically used to identify overbought or oversold conditions in a security. The primary Stochastic Oscillator gauges momentum by comparing a security's closing price to its price range over a set period, while the second Stochastic, usually calculated from the first, smooths the data to reduce noise and improve decision-making. Traders often use crossovers, divergence, and the indicator’s position relative to its thresholds (commonly 20 and 80) to generate buy or sell signals, making it a valuable asset in trending markets.