Stochastic Oscillator
Momentum Indicator
Stochastic Oscillator
The Stochastic Oscillator compares a closing price to its price range over a specific period.
Overview
This momentum indicator shows the location of the close relative to the high-low range over a set number of periods. Values range from 0 to 100, with readings above 80 indicating overbought and below 20 indicating oversold.
Use Case
Best for identifying momentum shifts and potential reversal points.
Calculation
%K = (Current Close - Lowest Low) / (Highest High - Lowest Low) × 100