The Stochastic Oscillator (14,3,3) compares a closing price to its high-low range over a period. It oscillates between 0 and 100, with %K as the fast line and %D as the smoothed signal line.
Parameters (14,3,3)
Overbought: 80-100 — potential reversal down
Oversold: 0-20 — potential reversal up
Interpretation
Overbought: %K above 80 — potential reversal down
Oversold: %K below 20 — potential reversal up
%K = fast line, %D = slow signal line
Data refreshes periodically — not real-time
Trading Signals
Buy: %K crosses above %D in oversold zone
Sell: %K crosses below %D in overbought zone
Crossovers inside the 20-80 band are less reliable