Stochastic Oscillator
An oscillator showing where the current close sits within the high-low range of the last n periods.
Formula
%K = (Close - Lowest Low over n) / (Highest High over n - Lowest Low over n) x 100; %D = 3-period moving average of %K
Unit
%
In depth
The stochastic asks a narrow question: is the close near the top or the bottom of the recent range. That makes it well suited to range-bound conditions and poorly suited to trends, where it pins near 100 or 0 for extended stretches. The fast version uses raw %K and is noisy; the slow version smooths it, which is what most platforms plot by default. Conventional thresholds are 80 and 20, and like every threshold in this category they are convention rather than evidence, and this entry attaches no forecast to them.
Worked example
Over 14 periods the high is ₹536 and the low ₹468, a range of ₹68. With a close of ₹504, %K = (504 - 468) / 68 x 100 = 52.9 — the close sits just above the middle of the range.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Stochastic Oscillator” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.