How Stochastic Oscillator Bitcoin Indicator Works

The Stochastic oscillator indicator uses time periods to calculate the fast & slow lines. 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 bitcoin trend indicator to see overbought and oversold levels, trader can use periods 10 periods.
• The default period used by stochastic bitcoin trading oscillator is 12.

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

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

Oversold & 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 indicator. These levels can also be adjusted to the 30 & 70 levels.

Overbought and Oversold Levels on Stochastic Oscillator Technical Indicator