Stochastic is a simple momentum oscillator developed by George C. Lane in the late 1950’s. Being a momentum oscillator, Stochastic can help determine when a currency pair is overbought or oversold.

J.B. Maverick is an active trader, commodity futures broker, and stock market analyst 17+ years of experience, in addition to 10+ years of experience as a finance writer and book editor. The ...

Technical analysis is often the bread and butter of short-term traders because specialized trading tools can quickly analyze price data and trends. While long-term investors are usually more concerned ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Somer G. Anderson is CPA, doctor of ...

What is the stochastic oscillator? The stochastic oscillator is a momentum indicator, which compares the most recent closing price relative to the previous trading range over a certain period of time.

The stochastic oscillator is a technical indicator that enables traders to identify the end of one trend and the beginning of another. Discover what the stochastic oscillator is and how to use it to ...