Technical Analysis of Stochastic Oscillator Indicator

A lot of xauusd information can be gathered from the shapes and duration of the xauusd market tops and bottoms of the stochastic oscillator xauusd indicator.

The amount of time that the xauusd instrument stays overbought or oversold is an important factor when analyzing the strength of the xauusd market trends.

Gold Market Tops

Narrow xauusd market top that does not reach very high above 80 %

Narrow xauusd market tops means that the bulls are weak, and that the xauusd bears have overpowered the xauusd bulls very quickly. This means that the xauusd bears might push the gold price further down without much resistance from the xauusd bulls.

Very high, wide xauusd market tops

Wide xauusd market top mean that the xauusd bulls are very powerful much more than the xauusd bears and the ensuing short term xauusd trend reversal (retracement), will be very short lived. Retracement on the stochastic oscillator xauusd technical indicator will not even reach the over-sold levels before stochastic oscillator xauusd technical indicator moves back to the over bought levels.

Gold Market Bottoms

A narrow xauusd market bottom that doesn't reach very deep below 20 %

The narrow xauusd market bottom means that xauusd bears are weak in their attempt to push the gold price down, the xauusd bulls have gained control of the gold price pretty fast so the gold price movement upwards will continue for a while. And the upward xauusd market xauusd trend will continue for a while.

Very wide, deep xauusd market bottoms

A wide xauusd market bottom is a sign that the xauusd bears are very strong and the xauusd sellers are in control of the gold price, therefore any retracement upwards will not stay for long.