How Stochastic Oscillator Indicator Works

The Stochastic oscillator 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 indicator for.

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

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

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

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

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

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

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

Overbought and Oversold Levels on Stochastic Oscillator Technical Indicator