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1. Introduction
The Stochastic indicator is a popular indicator that measures momentum based on the location of the close on a chart candlesticks.

2. Construction
In this page we break down the three different versions of the Stochastic indicator - Fast, Slow and Full - and show the calculations for their plotted lines.

3. Overbought and Oversold Levels
We look at the first interpretation of using this indicator. When the indicator oscillates towards its extremes, it indicates that a currency pair is being accumulated or distributed. We also describe examining longer term period charts before placing short term trades.

4. Shapes of Tops and Bottoms
The second interpretation involves analysizing the shapes and timing the durations of peaks and troughs of the Stochastic indicator.

5. Crossovers
The third interpretation looks at crossovers of the %K and %D lines of the indicator. This is a similar technique to moving average crossovers.

6. Divergence
The final interpretation is the most intricate and provides some of the stronger signals when using this indicator. Divergence occurs when the price sets new highs or lows that are not matched by the indicator.

7. RSI and MACD-Line 
In this section we add two more technical indicators to help collaborate the signals that Stochastic produces. We analyze the same time period and currency pair that is shown in Pages 3 and 4.

8. RSI and MACD-Line Part II
The analysis of the EUR/GBP pair using three technical indicators is continued.

9. Conclusion
We conclude our article on signals and interpretations based on this useful and popular technical indicator.