STOCH

Overview of the Stochastic Oscillator Indicator.

The stochastic oscillator is a technical indicator of momentum that shows where the closing price for a period fits in the relative high-low range of a lookback period, typically 14 periods.

The stochastic oscillator expresses the closing price for a period as a percentage of the recent high and low for a security. The most recent closing price is the most important data point in the calculation.

The stochastic oscillator is plotted as two lines. The first line is the current stochastic oscillator percentage value, and the second line is a three-day simple moving average of the percentage value. These are known as %K and %D, respectively.

Source code for the Stochastic Oscillator function is available here.