Stochastic Oscillator

The Stochastic Oscillator is a momentum indicator. It shows when the market's momentum is increasing or decreasing. It can help determine whether a company is overbought or oversold.

Formula

YCharts calculates it as the following:

The Stochastic Oscillator has two different lines, %K and %D.
%D = 3-day moving average of %K.
The two are calculated as follows:

%K = [(Last Closing Price - Lowest Closing Price for period) / (Highest Closing Price for Period - Lowest Closing Price for Period)] x 100

%D = (Sum of last three %K values / 3) for a rolling three-day period