Speaking of Trading Oscillator
STO Chart Demo
What is Speaking of Trading Oscillator (STO)?
STO is the short-term Oscillator of Speaking of Trading. It is an indicator that gives traders the ability to spot near-term movements in the market, hence reducing the risk of every trade. It can be useful to start new positions, end existing positions, maximize profits, reduce losses etc.
How many states does STO have?
STO has three main states, Oversold, Neutral and Overbought depending on STO levels.
Oversold levels start at -40. Deeply Oversold levels range between -60 to -70. Extreme Oversold levels start at -70.
Neutral levels range from -40 to +40.
Overbought levels start at +40. Deeply Overbought levels range between +60 to +70. Extreme Overbought levels start at +70.
How to interpret the STO tool?
When the STO moves from Oversold levels to positive territory, a buy signal is generated as the market tends to favor new buys. Reversely, sell signals are triggered when the indicator falls from Overbought to negative territory.
Neutral levels indicate no specific near-term direction, signaling an unclear future market movement. Within this interval, the importance of the indicator is reduced, yet can serve as a proxy for future developments if limits are close.
How often is STO updated?
STO is updated every day, excluding weekends and market holidays.