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Stochastic oscillator

A momentum indicator comparing the close with the recent high-low range.

Technical AnalysisIntermediate

Definition

The stochastic shows where price closed within its range over a period, usually 14 bars, on a 0 to 100 scale. %K is the fast line and %D, a 3-period average of %K, is the signal. Above 80 is called overbought, below 20 oversold.

Formula

%K = (close - lowest low) / (highest high - lowest low) x 100

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