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Indicators 5 min read

Stoch Levels Overlay — classic stochastic oscillator over the chart

Overlays stochastic 0/20/80/100 levels directly on candles: soft overbought/oversold zones, guide lines, and an optional %K/%D projection. Convenient for catching reversals at channel edges and disciplining entries with Spectra Charts.

Contents

Why this is needed

Stoch Levels Overlay brings the stochastic logic out of a separate pane right into the price space. On the chart you see two soft areas — overbought (80–100) and oversold (0–20) — plus thin guide lines 0/20/80/100. You can also draw %K and %D lines if you like, but not in percentages — in prices of the current channel — so the entry moment is readable without glancing down.
As a result, you get visible “corridor edges” where it’s convenient to look for a bounce or breakout with continuation — especially on short timeframes on Pocket Option.

Terms in brief:
  • OB/OS — overbought/oversold.
  • %K/%D — stochastic lines; %D is a smoothed version of %K.

How it works

  • Take a rolling High/Low window of length Period (HL window) and compute its range.
  • Draw 0/20/80/100% lines of this range and fill the 0–20 and 80–100 zones.
  • Optionally project %K/%D into prices: %K and %D become thin guides through the middle of the channel — this helps you see the exact price where the signal turned.

Indicator parameters (visual)

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Parameters and impact

Window

ParameterWhat it doesLowerHigher
Period (HL window)Length of the range within which we measure price positionReacts faster, more noiseSmoother, anchors are steadier
Window placementTrailing or centeredClassic lookStraighter lines in trend

Levels and zones visuals

ParameterWhat it doesLowerHigher
Overall opacitySaturation of all layersSubtleEmphasis on zones
Show 0/20/80/100 linesThin guidesCleaner backgroundMore precise edge entries
Line thickness/colorGuide line styleMinimalismEmphasize levels more
Show OB/OS zonesFill for 80–100 and 0–20More focus on candlesEasier to see touches

%K / %D lines on price

ParameterWhat it doesLowerHigher
Show %K / %DTurn the lines onCleaner backgroundMore timing cues
%K smoothingSMA for the “fast” lineEarlier signalLess chop
%D periodSMA of %KMore sensitiveCalmer
%K/%D color/thicknessLine visibilityMore neutralMore expressive

Tune it to your style

  • More triggers — smaller HL Period (9–12), turn %K on, smoothing 2–3, zones enabled.
  • Fewer but cleaner — period 14–21, work from 20/80 lines by close, unhurried %D (3–5), zones semi-transparent.

Practical presets

  • HL Period: 12–14
  • Placement: Trailing
  • 0/20/80/100 lines: on, thickness 1–2
  • Zones: on, opacity 0.25–0.35
  • %K: on, smoothing 2–3
  • %D: off, or 2 if you want a confirming cross

How to combine

  • Trend Signals (EMA ribbon): trade from 20/80 zones only in the ribbon’s trend direction. Skip opposite touches.
  • Flip Strike: use the overlay as a “timing trigger” after an arrow appears. Touch at 80 → SELL, at 20 → BUY, if it aligns with the signal.
  • Range Detector: inside a range, 20/80 touches work more often; at channel edges — prioritize bounces.

Trading scheme (binary options)

Context

Determine trend on your TF (using Trend Signals or another trend filter). On the chart, enable 0–20/80–100 zones and the 20/80 lines.

Bounce

Price touches 80 in a bearish context or 20 in a bullish one, and a mild candle reaction appears. Enter on the next candle in the trend direction.

Exit from the zone

%K crosses the 80 line top-down (or 20 bottom-up) and settles back inside the channel — enter on the next candle.

Expiration

Start with 1 candle on OTC; on calm pairs you can test 2 candles. If candles are stretched, go back to one.

Risk management

Fix your stake size. Avoid a series of consecutive entries on the same asset if %K/%D are whipsawing along a level.

FAQ