01 · Indicator · Stochastic Oscillator
What is Stochastic Oscillator?
Developed by George Lane in the 1950s, the stochastic places the close within the range of the last N candles.
The idea is simple: in an uptrend, closes happen near the highs.
02 · Indicator · Stochastic Oscillator
The calculation
%K = 100 × (Close − N low) / (N high − N low). %D = average of %K.
Common setting: 14, 3, 3.
03 · Indicator · Stochastic Oscillator
Reading the signals
Above 80: overbought; below 20: oversold. The %K/%D cross is the trigger.
Divergences with price flag fading momentum.
04 · Indicator · Stochastic Oscillator
Settings and combinations
The stochastic is adjustable in the Momentum group. It pairs well with: StochRSI, Williams %R, RSI.
To put the signal in context, check the Heatmap, the news or ask the AI Compass. No indicator is investment advice.
◆ Step by step
Get started in 4 steps
- 01
Open a chart
Search for an asset on the Charts page and pick a timeframe.
- 02
Add the indicator
Open Indicators, Momentum group, then click Stochastic Oscillator.
- 03
Adjust the settings
Change the parameters in the indicator sheet to suit your horizon.
- 04
Confirm the signal
Cross-check with the main trend and another indicator before concluding.
◆ FAQ
Your questions, clear answers.
01Slow or fast stochastic?
Slow smooths %K with an extra average and gives fewer false signals.
02Difference with RSI?
The stochastic compares the close to the range, the RSI gains to losses.
03Does it work in trends?
It stays in extreme zones for long; follow the trend.