Stochastic oscillator
Also called: %K, %D, slow stochastic
A momentum oscillator showing where the latest close sits within the high-low range of the last N periods, on a scale of 0 to 100.
%K = (close − lowest low) ÷ (highest high − lowest low) × 100, and %D is a short moving average of %K. Readings above 80 and below 20 are conventionally called overbought and oversold; crossovers are frequent and often false, especially in trends.
Learn more in these lessons
- The stochastic oscillatorHow does the stochastic oscillator work, and when does it mislead?
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