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Trading glossary

What is Stochastic Oscillator?

IndicatorsIntermediate

The stochastic oscillator compares a stock's closing price to its price range over a set period, displayed as a value between 0-100. Above 80 is overbought; below 20 is oversold. Like RSI, stochastic crossovers and divergences can signal potential reversals.

Related terms: RSI (Relative Strength Index) Overbought Oversold

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