Technical Stock-Picking: How to Trade Off of Stochastic Oscillators

This technical analysis-based assignment was written Stockpickr member Ira Krakow.

Stock market technicians use Stochastic oscillators to measure a stock's momentum -- the strength of a move in a particular direction. But looking at a chart's trend is not enough to make a trade decision.

If an uptrend's strength is weak, it could easily reverse quickly and you could end up buying just before the price tanks. Or if you're unable to spot a healthy trend, you could miss out on a big upside move. Interpreting a stochastic chart correctly can help you avoid these problems.

A Stochastic Look at Hovnanian ...