What is the Stochastic Oscillator?
A momentum indicator that compares a stock's closing price to its price range over recent periods.
The simple version
The Stochastic Oscillator compares where a stock closed relative to its high-low range over the last 14 periods. The result is a number between 0 and 100.
- Above 80 — overbought zone. Price is closing near the top of its recent range.
- Below 20 — oversold zone. Price is closing near the bottom of its recent range.
The two lines: %K and %D
The indicator shows two lines:
- %K — the raw stochastic value (faster)
- %D — a 3-period moving average of %K (smoother, used as a signal line)
A bullish signal occurs when %K crosses above %D in the oversold zone. A bearish signal occurs when %K crosses below %D in the overbought zone.
How it differs from RSI
RSI measures the speed and magnitude of price changes. Stochastic measures where price closed relative to its range. They often agree — but when they diverge, it can indicate a stronger signal or a weak setup. TradeMind AI uses both.
On the dashboard
The Stochastic sub-chart is available in the chart's indicator tabs. It is most useful on daily or 4-hour timeframes. Very short timeframes produce too much noise.
See it in action
Every TradeMind AI signal shows confidence score, entry, stop, target, and R-multiple — all explained with tooltip hints when you hover the term.