Example of Stochastic Squeeze & Pop and Drop technique

First, You need to learn what the stochastic indicator measures.

Link to Chartschool : Stockcharts

1. Learn the difference between Fast Stochastic, Slow Stochastic and Full Stochastic.

The Bottom Line - If the Stochastic indicator crosses 80 and stays above 50, The security is bullish, If it crosses 20 and stays below 50, the security is bearish. - That's it.

How can it be used for a profitable play?

1. The Last Stochastic Technique 
2. Stochastic Pop and Drop Technique

Before we head out further, let me introduce you guys, the Importance of trendline, and how the stochastics interpret trendlines with few examples.

Example 1:

Here is something that looks alike, 

The previous gave you an Idea of where the security is heading, While being above the major trend. Found support there, Showing Oversold on Stochastics, forming a base there.

Now to answer the question, How do I trade here?

The first chart just uses Stochastic - giving you two good signals.

The second chart, includes addition of RSI 3. Giving you 8 signals, with two bad signals towards the end of the trend.

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I will let you guys pick your way.