Momentum

Stochastic Oscillator

STOCH

Shows where the current close sits within the recent high-low range on a 0–100 scale, smoothed into %K and %D lines. Readings above 80 indicate overbought; below 20 indicates oversold. %K/%D crossovers signal potential turns.

Tips

%K crossing below %D in overbought territory is a stronger sell signal than a crossover in neutral territory

Stochastic divergence from price at extreme levels is one of the most reliable reversal signals for range-bound markets

Parameters

K Period

2 - 30

D Period

2 - 20

Smooth K

1 - 10