# Momentum Signals

> Analyze Stochastic oscillator for momentum signals and divergences

- Skill: `huskydanny/momentum-signals` (Agent Skill)
- Install (CLI): `npx skillmds@latest add huskydanny/momentum-signals`
- Raw SKILL.md: https://api.skillmd.com/api/skills/huskydanny/momentum-signals/raw
- Safety review: pending
- Works with: Claude Code, Claude.ai, OpenAI Codex
- Category: AI & ML
- Author: HuskyDanny (https://skillmd.com/u/huskydanny)
- Updated: 2026-09-10
- Page: https://skillmd.com/skills/huskydanny/momentum-signals

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## Momentum Signals Workflow

OBJECTIVE: Assess momentum health and identify potential reversals.

### Step 1: Get Stochastic Readings
- Use `stochastic_analysis_tool` for current %K and %D values
- Default settings: K=14, D=3

### Step 2: Classify Zone
- OVERBOUGHT: %K > 80 (price may be extended, watch for reversal)
- OVERSOLD: %K < 20 (price may be depressed, watch for bounce)
- NEUTRAL: 20 < %K < 80 (no extreme)

### Step 3: Check Crossovers
- BULLISH CROSSOVER: %K crosses above %D (buy signal)
- BEARISH CROSSOVER: %K crosses below %D (sell signal)
- NO CROSSOVER: Watch for setup

### Step 4: Divergence Check
- BULLISH DIVERGENCE: Price makes lower low, but %K makes higher low
- BEARISH DIVERGENCE: Price makes higher high, but %K makes lower high
- These are powerful reversal signals

### Output Format
Stochastic: %K={value}, %D={value}
Zone: [OVERBOUGHT/OVERSOLD/NEUTRAL]
Signal: [BULLISH CROSSOVER/BEARISH CROSSOVER/NONE]
Divergence: [YES - TYPE/NONE DETECTED]
Interpretation: [Actionable assessment]