How Stochastic Oscillator Bitcoin Indicator Works

The Stochastic oscillator cryptocurrency 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 Bitcoin trader is using the Stochastic oscillator cryptocurrency indicator for.

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

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

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

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

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

To look for "oversold" region 20% stochastic bitcoin trading oscillator mark is use.

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

Overbought and Oversold Levels on Stochastic Oscillator Crypto Indicator