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  1. Home
  2. /Glossary
  3. /Stochastic Oscillator
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Stochastic Oscillator

A momentum indicator that compares a closing price to its price range over a given period.

Definition

A momentum indicator that compares a closing price to its price range over a given period. Like RSI, readings above 80 suggest overbought conditions and below 20 suggest oversold. It's particularly useful for spotting reversals in ranging markets where trend indicators struggle.

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Related Terms

RSI (Relative Strength Index)

A momentum oscillator that measures the speed and size of recent price changes on a scale from 0 to 100.

Technical Analysis

Studying price charts and patterns to predict future movements.

Accumulation Phase

A period when smart money quietly buys up an asset before a major price move.

Annualized Return

The average yearly return on an investment, calculated to account for compounding.

Arbitrage

Profiting from price differences of the same asset across different markets.

Ask Price

The lowest price a seller is willing to accept for an asset.

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