Technical analysis
Stochastic oscillator
Also known as: stochastic, %K %D
The stochastic oscillator measures where the current close sits within the recent high-low range, on a 0–100 scale, to flag momentum extremes.
Readings above 80 are overbought and below 20 oversold, with %K/%D crossovers and divergence as signals. It is based on the idea that closes cluster near highs in uptrends and near lows in downtrends.
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