You then have to backtest different settings, depending on the market you are trading and the timeframe you are analyzing. I’m new to this so I’m still researching about these indicators. But I think it would be best to use it together with other indicators like candle stick patterns, moving averages, support and resistance, and the like. Divergence happens when the asset price makes a new high or low without showing on the Stochastic Oscillator. Still, the Stochastic doesn’t move to a high reading accordingly. As with the example of the Stochastic indicator, many traders may realize now that their …