The Stochastic Oscillator is a momentum indicator that measures where a stock price is in relation to its recent trading range.

Usually, the calculation uses a 14-day trading period. This is then ‘smoothed’ by taking a 3-day moving average of that 14-day range. Both lines are shown on the Stochastics chart. All the inputs into the Stochastics calculation can be adjusted in the settings modal.

Both Stochastics lines oscillate on a vertical scale of 0 to 100. A stock may be considered to be overbought (or oversold) when the oscillator moves above 80 (or below 20).