A stochastic oscillator is a momentum indicator comparing an asset’s closing price with a range of its prices over a set period of time.

The oscillator can be smoothed out by adjusting the time period or taking a moving average of the result.

The value of the stochastic oscillator moves between the bounds of 0 and 100 and is used to determine if an asset is overbought (above 80) or oversold (below 20).

Example: If the Stochastic Oscillator (14, 1, Fast, Day) of EUR/USD

You can use the Stochastic Oscillator in the wizard using the words **Stochastic Oscillator** or with the abbreviations **SO** or **Stoch**.

**FORMULAS**

** Stochastic oscillator value (aka: %K)** = (Last bar closing price - Lowest price) / (Highest price - Lowest price) * 100

** Signal line (aka: %D) **is a simple moving average of D values of %K

**PARAMETERS**

** Stoch number of bars (aka: K)** stands for the number of bars to be taken in to the stochastic calculation value (aka: %K)

** D** stands for the number of %K values to be used for the signal line (aka: %D).

**Smooth: Fast/Slow**

** Slow** will smooth the value of %K by calculating the simple moving average of 3 values

** Fast** will consider 1 value normally, without smoothing the %K

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