The stochastic indicator is plotted as two lines.
All indicators confirm that a change in trend is about to occur.
As very strong indication of trend reversal is about to occur when the indicator reaches its extremes of 0 and 100. Following a pullback in price, if the indicator retests these extremes, a good entry point is indicated. Stochastic indicators tend to be leading indicators, as opposed to moving average indicators which are lagging indicators. Leading indicators provide greater opportunity for gain, but offer increased risk. As shown in the above chart, the stochastics forecasted changing trends just prior to the actual occurrences.