How Stochastic Oscillator Oil Trading Indicator Works

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

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

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

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

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

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

To look for 'oversold' region 20% stochastic oil trading oscillator mark is use.

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

Overbought & Oversold Levels on Stochastic Oscillator Technical Indicator