What Is Stochastic oscillator?

The Stochastic Oscillator is a widely used technical indicator tool in quantitative finance that helps traders assess the momentum of an asset’s price movement. The primary function of the stochastic oscillator is to determine the position of the current closing price relative to the price range (i.e., the high-low range) over a specified period. This oscillator is particularly effective in identifying potential reversal points, overbought and oversold conditions, and confirming trends.

See also

• Trading Strategy

• Technical indicator-based strategies

• Stochastic RSI indicator