Stochastic oscillator
Where the close sits in the high–low range of the last N bars.
Formula
Raw %K = 100 × (Close − Lowest low) ÷ (Highest high − Lowest low) %K = SMA(3) of raw %K; %D = SMA(3) of %K
How to read it
Above 80 overbought, below 20 oversold; %K crossing %D is the trigger. In strong trends it stays pinned near one end.
How to use it
Times entries within a trend and finds turns inside a range.
In Kereon
Charts · Superchart. Defaults 14, 3, 3 (the 'slow' stochastic); levels 80 and 20. A window with no range draws nothing rather than 0 or 50.
Also called: stoch, %k, %d.