The best way to find which indicator is to run the stochastics and see at what threshold works with the least false signals. Also it may be necessary to adjust the set time period and or the sum of the days being used. Divided by Sum of 3 days of the 10 day high minus the 10 day low. So if our high is 100 and the low is 80 for the last 10 days.
Refiners produce or buy crude oil and sell the petroleum products.
The crack spread defines the value added by the refining operation. In a analysis of the spread there are 3 standard spreads to work from. To calculate the spread you first translate the crude oil price into cents per gallon. 5 Past data has shown that spreads in the mid to low 8 cent area are good buy spread points. On the '94 contracts spreads in the .0750 to .0800 area were the extreme.