UNDERSTANDING THE STOCHASTIC OSCILLATOR: A GUIDE FOR TRADERS

The Stochastic Oscillator is a momentum indicator widely applied by traders to detect overbought and oversold conditions in the market. It consists of two lines: %K and %D, both oscillating between 0 and 100. The %K line is a rapidly moving average, while the %D line serves as a smoother, slower-moving average of the %K line. When the %K line cross