Forex glossary

Stochastic Oscillator

The Stochastic Oscillator is a momentum indicator that compares an asset's closing price to its high–low range over the last N periods (default 14). It plots a %K line and its moving average %D, both scaled 0–100 — readings above 80 signal overbought conditions and below 20 oversold. Trade signals come mainly from %K/%D crossovers and divergences with price.

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