Technical
What is Stochastic Oscillator (%K / %D)?
A 0–100 oscillator locating today's close within the high–low range of the past 14 days; %K is the raw reading, %D its 3-day smoothing.
Formula
%K = 100 × (Close − Lowest Low(14)) ÷ (Highest High(14) − Lowest Low(14)); %D = 3-period SMA of %K
How to Interpret
Above 80 = overbought territory, below 20 = oversold. The classic trigger is %K crossing %D while in an extreme zone — a stochastic cross from oversold is a standard mean-reversion buy setup. Faster and twitchier than RSI; best used in ranging markets or as a timing refinement on slower tools.
Typical Ranges
80+ overbought, 20− oversold. The most whipsaw-prone of the major oscillators — in trends it pins at extremes just like RSI.
Find Stocks Using This Signal
Screen US and Indian stocks by Stochastic Oscillator in the Technical Screener.