Stochastic Oscillator

What is Stochastic? And what is Oscillators? A technical momentum indicator that compares a security's closing price to its price range over a given time period. The oscillator's sensitivity to market movements can be reduced by adjusting the time period or by taking a moving average of the result. This indicator is calculated with the following formula:

%K = 100[(C - L14)/(H14 - L14)]

C = the most recent closing price
L14 = the low of the 14 previous trading sessions
H14 = the highest price traded during the same 14-day period.

%D = 3-period moving average of %K

Fixed minimum and maximum do not change. You can apply into 1 mins to weekly as well. Of course that is certain analyst will used different period for the different chart time period. Here I strongly suggest you as a beginner try not apply different %K and D% for different chart time period unless you are fully understood the theory of Stochastic Oscilators.
See chart:

Now, as you can the chart(GBPUSD 15mins), after apply the Stochastic Oscillators; its appear below the chart. Different from Moving Average and Parabolic SAR is on the chart. When market has been reached to A(as well as C, and E) and Stochastic K% and D% at the same time above level 80(A1, C1 and E1)). Mean the market has been overbought. By this time K% start Cross below the D%. It is a confirmation Crossing Signal.
When market has been fall to B(as well as D, F and H) mean the market has been oversold. At the same time the Stochastic Oscillators K% and D% has fall to level 20 or below B1( as well as D1,F1 and H1). And the K% start cross above D% mean this is Crossing Signal.
Now the questions is how many pips we can really make? And how long to take? Example on C(C1) and D(D1) and F(F1). Simple, what we need to do is combine together with either Pivot Point or Trendline or Parabolic SAR. So next topic: Pivot Point Trading.