Stochastic Oscillator
Momentum oscillator comparing the close to the high-low range over N bars, with %K smoothing and a %D signal average. Readings above 80 are overbought, below 20 oversold.
Stochastic Oscillator
Definition
Momentum oscillator comparing the close to the high-low range over N bars, with %K smoothing and a %D signal average. Readings above 80 are overbought, below 20 oversold.
Parameters
Asset, Lookback period (14), %K smoothing (3), %D smoothing (3), Line (k | d)
Output range: 0 to 100
Example
`Stochastic(AAPL, 14, 3, 3, k) < 20` (Oversold bounce setup)
Usage notes
Bullish signal is %K crossing above %D in oversold territory — a low %K alone just means a strong downtrend.
Full indicator reference