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Stochastic Oscillator (STOCH)

StratCraft indicator page for Stochastic momentum analysis.

Route: /indicators/stoch/

What It Does

Stochastic compares the close to the recent high-low range. It is used to identify overbought and oversold momentum conditions.

Formula

%K = 100 * (Close - Lowest Low(n)) / (Highest High(n) - Lowest Low(n))

%D = SMA(%K, 3)

Parameters

  • period - default 14
  • period_dfast - default 3
  • movav - default MovingAverageSimple
  • upperband - default 80
  • lowerband - default 20
  • safediv - default False
  • safezero - default 0
  • period_dslow - default 3

C++23 API

#include <nonabt/indicators/stoch.hpp>
auto stoch = std::make_unique<nonabt::STOCH>(data(), 14, 3, "MovingAverageSimple", 80, 20, false, 0, 3);

Common Usage

  • Use Stochastic for overbought/oversold conditions.
  • Combine it with price structure or trend filters.
  • Use crossovers between %K and %D for timing.

Practical Pattern

Many mean-reversion systems buy near oversold levels and sell near overbought levels, but only when the broader trend is not too strong.

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