Indicators & Analysis
Intermediate
Stochastic Oscillator
Also called: stoch
Momentum oscillator (0–100) showing where current close sits inside the recent high-low range.
Definition
The stochastic asks: where is today’s close inside the last N periods’ high-low range? If it’s near the top of the range, momentum is up; near the bottom, momentum is down.
Two lines: %K (raw) and %D (smoothed %K). Crossovers and overbought (>80) / oversold (<20) zones are the standard signals.
Formula
%K = 100 × (Close − Lowest_low_n) / (Highest_high_n − Lowest_low_n) %D = SMA(3) of %K