How Stochastic Oscillator CFD Technical Indicator Works

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

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

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

In ranging cfd markets this Stochastic oscillator cfd indicator can be used to show oversold/overbought areas as potential profit taking points when trading the market.

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

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

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

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

Overbought and Oversold Levels on Stochastic Oscillator Indicator