How Stochastic Oscillator XAUUSD Indicator Works

The Stochastic oscillator xauusd indicator uses time periods to calculate the fast & slow lines. Number of time periods used to calculate the %K and %D line depends on what purpose a trader is using the Stochastic oscillator xauusd indicator for.

• A trader using the Stochastic oscillator xauusd indicator in combination with a xauusd trend indicator to see overbought & oversold levels, trader can use periods 10 periods.
• The default period used by stochastic xauusd oscillator indicator is 12.

Traders should not use stochastic xauusd indicator alone for making xauusd decisions, but should use this Stochastic oscillator xauusd indicator in combination with other xauusd technical indicators.

In ranging xauusd markets this Stochastic oscillator xauusd technical indicator can be used to show over-sold/over-bought levels as potential profit taking points when trading the gold trading market.

Oversold & overbought xauusd levels by default are 20 and 80, but other xauusd traders use 30 and 70.

To look for "overbought" region at the indicator's 80% stochastic xauusd oscillator mark is used

To look for "oversold" region 20% stochastic xauusd oscillator mark is use.

The overbought and oversold levels are displayed as dotted horizontal lines on the stochastic oscillator xauusd indicator. These levels can also be adjusted to the 30 & 70 levels.

Overbought and Oversold Levels on Stochastic Oscillator Technical Indicator