How Stochastic Oscillator Gold Indicator Works

The Stochastic oscillator gold 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 Gold trader is using the Stochastic oscillator gold indicator for.

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

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

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

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

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

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

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

Overbought and Oversold Levels on Stochastic Oscillator