The Stochastic Oscillator is a momentum indicator that shows the location of the close relative to the high-low range over a set number of periods.


The Stochastic Oscillator is interpreted as follows:

  • Overbought Condition: Traditionally the stochastic reading above 80 is considered an overbought condition and could be used to signal a sell trade.

  • Oversold Condition: Conversely, a stochastic reading below 20 is considered an oversold condition and could be used to signal a buy trade.

Indicator Triggers:

K line cross up/down

K line in zone

D line in zone and cross up/down the K line

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