Free Forex Signal: Stochastic Oscillator

What is the Stochastic Oscillator?

A stochastic oscillator is a momentum indicator in technical analysis that compares a security’s closing price to its price range over a specific period, typically 14 periods. It helps identify overbought and oversold conditions by measuring how close the closing price is to the high and low of that range.

Identify overbought and oversold conditions with precision. This free Stochastic Oscillator tool highlights potential market reversals based on momentum crossovers.

View Signal
How This Signal Works

Signal Types Explained

  • OVERBOUGHT (SELL): Both %K and %D are above 80
  • OVERSOLD (BUY): Both %K and %D are below 20
  • BULLISH CROSSOVER (BUY): %K crosses above %D (often below 20)
  • BEARISH CROSSOVER (SELL): %K crosses below %D (often above 80)
  • Neutral: No strong momentum or signal crossover

Customization Options

%K Period – Lookback period to calculate high/low range (default: 14)

%K Slowing – Smoothing of %K line (default: 3)

%D Period – Moving average of smoothed %K (default: 3)

Key Takeaways

  • Works best in ranging or corrective markets
  • Use on daily charts for longer-term setups
  • Combine with MACD or support/resistance for confirmation
  • Look for crossovers near the extremes (above 80 or below 20) for more reliable signals

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