Stochastic Crossovers: A crossover is one of the primary trading signals of the Stochastic Oscillator. A bullish crossover occurs when the %K value crosses above the %D line, signaling potential upward momentum. A bearish crossover occurs when the %K value drops below the %D line, indicating potential downward momentum.
Example: If the %K line (fast line) crosses above the %D line (slow line) and both lines are below 20, it might be considered a bullish signal by some traders.
As always, it's essential to utilize the Stochastic Oscillator in combination with other technical tools and analysis techniques. This ensures a more holistic view of the market and better-informed trading decisions.