Stochastic Oscillator
Posted by Mohammad Rahhal, Last modified by Moath Shareef on 18 August 2020 02:18 PM

The Stochastic Oscillator is a popular indicator that shows where a security’s price has closed in proportion to its closing price range over a specified period of time.

The Stochastic Oscillator has two components: %K and %D. %K is most often displayed as a solid line and %D is often shown as a dotted line. The most widely used method for interpreting the Stochastic Oscillator is to buy when either component raises above 80 or sell when either component falls below 20. Another way to interpret the Stochastic Oscillator is to buy when %K raises above %D, and conversely, sell when %K falls below %D.

str Symbol
int %K Periods
int %K Slowing
int %D Period’s
int Moving Average Type

The most commonly used arguments are 9 for %K periods, 3 for %K slowing periods and 3 for %D smoothing.

See Also

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