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Trading & Technical Analysis

Stochastic Oscillator

Also called: stochastics, %K %D

The stochastic oscillator compares the closing price to the high-low range over a lookback period, on the observation that closes cluster near highs in uptrends and near lows in downtrends. It's faster and noisier than RSI, generating more signals and more false ones. It's designed for range-bound markets and misleads persistently in trending ones.

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