TRADING GLOSSARY
Stochastic oscillator
The stochastic oscillator measures where the closing price lies within the high-low range over a chosen period, usually on a scale from 0 to 100. Its main line, %K, is commonly paired with a smoothed line, %D; high or low readings do not guarantee reversals.
EXAMPLE
With a hypothetical period high of 120, low of 100, and latest close of 115, the unsmoothed %K is 75: the close lies three-quarters up the range.
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Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure