---
title: "Definition of Stoch"
url: https://signalscreener.fr/definition/stochastic/
markdown_url: https://signalscreener.fr/definition/stochastic.md
description: "A momentum indicator comparing a closing price to its price range over a given time period."
type: glossary-definition
site: Signal Screener
language: en
keywords:
  - "Stoch"
  - "Stochastic Oscillator"
translations:
  de: https://signalscreener.fr/de/definition/stochastic.md
  es: https://signalscreener.fr/es/definition/stochastic.md
  fr: https://signalscreener.fr/fr/definition/stochastic.md
  it: https://signalscreener.fr/it/definition/stochastic.md
  pt: https://signalscreener.fr/pt/definition/stochastic.md
---

# Stochastic Oscillator

## What is Stoch?

A momentum indicator comparing a closing price to its price range over a given time period.

## Think of it like this

Like measuring where today's temperature falls between the week's high and low - 80% means near the top of the range.

## Formula

```
%K = (Close - Lowest Low) ÷ (Highest High - Lowest Low) × 100
```

- **%K (Fast)**: Current position in range
- **%D (Slow)**: 3-period moving average of %K

## Why it matters

- Shows momentum and overbought/oversold levels
- Crossovers of %K and %D give signals
- Effective in ranging markets
- Divergences can predict reversals

## What's a good value?

| Range | Rating | What it means |
|---|---|---|
| > 80 | Overbought | Near top of range, may reverse down |
| 50-80 | Bullish | Upper half of range |
| 20-50 | Bearish | Lower half of range |
| < 20 | Oversold | Near bottom of range, may reverse up |

## Real-world example

%K crossing above %D from below 20 is a bullish buy signal.

---

This is educational content, not financial advice.

Source: [Definition of Stoch](https://signalscreener.fr/definition/stochastic/) on Signal Screener. Free to quote and cite with attribution and a link to that URL, which is the canonical one.

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