Definitions (2)

1. A model based on the belief that as prices increase (or decrease), closing prices tend to accumulate ever more closely to the highs (or lows) for a given period.
2. More generally, pertaining to a series of random processes.

Use stochastic in a sentence

You may want to figure out if you are in a stochastic period and try to find a way to make it work in your favor.

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The professor gave the students an extended explanation about the role stochastic has in the marketing and sales world of today.

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The stock market analyst used a stochastic model to explain the price behavior of a company's stock over the past month as it neared new highs.

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