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Stochastic Oscillator

This benchmark shows a real-time overview of the technical analysis for the selected timeframe. Summary Gold Spot/USD is based on the most popular technical indicators such as moving averages, oscillators and pivots. We use the above mentioned instruments at to produce Technical Analysis with a high success rate.


Today we are describing or explaining the Oscillator - STOCHASTIC OSCILLATOR


The Stochastic Oscillator (STOCH) is a momentum oscillator with a defined range. This indicator aims to showcase the relationship between the closing price and the high/low range over a specific number of periods set by the user. Typically, the Stochastic Oscillator serves three primary purposes: identifying overbought and oversold conditions, detecting divergences, and pinpointing bullish and bearish signals.

The Stochastics Oscillator, a range-bound tool, comprises two lines fluctuating between 0 and 100. The first line, referred to as %K, represents the current close in relation to the high/low range over the chosen period. The second line, known as %D, is a simple moving average of %K. While Stochastic allows for user-defined periods, the common selections include a 14-period %K and a 3-period SMA for %D.

The fundamental concept behind Stochastic is its use of closing prices to assess momentum. When prices conclude in the upper half of the high/low range over the specified period, the Stochastic Oscillator (%K) rises, signifying an uptick in momentum or buying/selling pressure. Conversely, when prices close in the lower half of the range, %K falls, indicating a waning momentum or buying/selling pressure.