Stochastic Oscillator
0-100 indicator showing overbought/oversold like RSI.
Stochastic compares current close to the high/low range of the last X candles (usually 14). Above 80 = overbought, below 20 = oversold. %K/%D crossovers give signals. Works best in ranges; in strong trends it can stay overbought/oversold for a long time. Often paired with RSI.
In plain words
0-100 indicator that says whether the last close is near the top or bottom of the last 14 candles' range. >80 = top of range, <20 = bottom. Weak in strong trends.
Example
ETH Feb 2024: stochastic at 95 for 2 weeks during the pump to 4k - overbought signal did not fire.
Also known as: stoch