Stochastic Oscillator

What is Stochastic?

Compares closing price to high-low range over a period, oscillates 0-100.

Zones

• %K > 80: Overbought zone
• 20-80: Neutral zone
• %K < 20: Oversold zone

Interpretation

• Overbought: %K > 80, potential reversal down
• Oversold: %K < 20, potential reversal up
• Crossover: %K crosses %D signals entry

Trading Signals

• Buy: %K crosses above %D in oversold zone
• Sell: %K crosses below %D in overbought zone
• %K = fast line, %D = slow signal line

Price Overlay

• Enter Closer-Look mode to see close price overlay
• Toggle: Show/hide close price line (right axis)
• Price new high + %K lower high = bearish divergence
• Price new low + %K higher low = bullish divergence