How Stochastic Oscillator Oil Technical Indicator Works

The Stochastic oscillator oil indicator uses time periods to calculate the fast & slow lines. The 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, one-can use periods 10 periods.
• The default period used by stochastic oil oscillator indicator is 12.

Traders should not use stochastic oil indicator alone for making oil 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 crude trading market.

Oversold & overbought oil 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 oscillator mark is used

To look for "oversold" region 20% stochastic oil 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 and 70 levels.

Overbought & Oversold Levels on Stochastic Oscillator Technical Indicator