Stochastic indicator: how to use it?

The Stochastic indicator is a popular technical analysis tool that helps traders assess current market conditions and find potential entry and exit points. It compares the current asset price to its range over a specific period of time. The values of the indicator fluctuate between 0 and 100, where levels above 80 indicate oversold conditions, and below 20 indicate overbought conditions. Using Stochastic helps identify trend reversals and better plan trading strategies, especially in high volatility conditions.