Stochastic: where is the close in its range?

Shows where the latest close sits inside its recent high to low range.

Illustration on a made-up price series, not market data. Hypothetical, for education only.

What it measures

%K is (close minus the lowest low) divided by (highest high minus the lowest low) times 100 over 14 periods. %D is a 3-period average of %K.

Above 80 means the close is near the top of the range, below 20 near the bottom.
%K crossing %D is often used as a timing signal.
Like RSI, it can stay at the extremes in a strong trend.

Using it alone in a trending market. It keeps saying overbought while price keeps rising.

1. What does the stochastic oscillator show? Trading volume. The average price. Where the latest close sits inside its recent high to low range.

2. A stochastic reading of 90 means ... the close is near the top of the range. price will fall. 90% of traders are buying.

3. Like RSI, in a strong trend the stochastic ... always stays near 50. can stay at the extremes for a long time. stops working.

Run the Stochastic Swing template next to RSI Reversal on the same asset and see where they agree.

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Educational content. Not investment advice. Past or simulated results do not predict future results.