How Stochastic Oscillator Energies Technical Indicator Works

The Stochastic oscillator energies indicator uses time periods to calculate the fast and 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 energies indicator for.

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

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

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

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

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

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

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

Overbought and Oversold Levels on Stochastic Oscillator Energies Trading Technical Indicator