Stochastic oscillator
Definition
A technical indicator which compares a stock's closing price to its price range over a given period of time. The belief is that in rising market stocks will close near their highs, while in a falling market they will close near their lows.
Use this term in a sentence
“ The stochastic oscillator was very technical, so we had our technical guy work on it for us and tell us what we needed. ”
“ The Stochastic oscillator was used by the day trader to attempt to extrapolate meaning from how the stock closed during the day. ”
“ Right now the market had been in a more upward trend therefore, due to the stochastic oscillator, the investor decides it is better to buy in the morning as the stock tends to be rise toward the end of the market day. ”
