The Stochastic Oscillator shows where the close sits within the recent high-low range on a 0–100 scale. The %K line is the raw position; %D is a moving average of %K. Readings above 80 are considered overbought and below 20 oversold.
How traders use it
- Look for %K crossing %D as a momentum trigger.
- Overbought and oversold zones flag stretched conditions, not automatic reversals.
- Divergence between the oscillator and price warns of weakening momentum.
See it in dtcharts
Add the Stochastic Oscillator from the indicators panel in the dtcharts terminal, or grab ready-to-paste code for MetaTrader, TradeStation and TradingView in the Stochastic Oscillator Traders' Tips article.