Blog : Stochastic Indicator
Stochastic
The Stochastic Oscillator (STOCH) is a range-bound momentum oscillator that displays the location of the close relative to the high/low range over a user-defined number of periods. It is typically used to identify overbought and oversold levels, spot divergences, and identify bullish and bearish setups or signals.
| Stochastic Inputs | |
|---|---|
| %K Length | 14 |
| %K Smoothing | 1 |
| %D Smoothing | 3 |
| Oversold Level | 20 |
| Middle Level | 50 |
| Overbought Level | 80 |
| Long - Entry Trigger | Long - Exit Trigger | Short - Entry Trigger | Short - Exit Trigger |
|---|---|---|---|
| %K crossover %D and %K > Middle Level | %K crossunder %D | %K crossunder %D and %K < Middle Level | %K crossover %D |
| Long - Entry Confluence | Long - Exit Confluence | Short - Entry Confluence | Short - Exit Confluence |
| %K > %D and %K > Middle Level | %K < %D and %K < Overbought Level | %K < %D and %K < Middle Level | %K > %D and %K > Oversold Level |