Stochastic Oscillator
The Stochastic Oscillator is plotted on a scale from 0 to 100. The upper and lower lines (marking the overbought and oversold levels) are at the 80 and 20 levels. In other words, readings above 80 are overbought levels, while readings below 20 are oversold levels. One added feature of the Stochastic Oscillator is that there are two oscillator lines instead of one. (The slower line is usually a 3-day moving average of the faster line). Trading signals are given when the two lines cross. A buy signal is given when the faster line crosses above the slower line from below 20.A sell signal is given when the faster line crosses beneath the slower line from above 80.The time period used by most chart analysts is fourteen days.
Use the Stochastic Oscillator (fast & slow) on our Live Charts
Any Time Frame
As is the case with most technical indicators, these oscillators can be employed in any time frame. That means that they can be used on weekly, daily, and intraday charts. It's a good idea to use the same time span in all time dimensions. When plotting the stochastics lines, for example, use 14 weeks on the weekly chart, 14 days on the daily chart, and 14 hours on an hourly chart, etc. Another reason for keeping the same numbers is that computers allow you to switch back and forth between weekly, daily, and intraday charts with a keystroke. Using the same time spans in all time dimensions makes your work a lot easier.
Oscillators
RSI
Stochastic
Momentum
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