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What Is the Stochastic Oscillator

The stochastic oscillator is a reading from 0 to 100 of where today's close sits in the range of the last fourteen days: at the lowest low it reads 0, at the highest high 100, and halfway 50. This paper shows you the euro's fortnight to 1 July 2025 drawn from real candles with the close at 94 on that ruler, the idea as a lift in a building fourteen days tall, the reading in its box under the daily chart, the three numbers and one division behind a day's value, and the dialog that adds it on your platform.

Difficulty
Beginner
Reading time
5 min
Pages
8
Reviewed by
Saman Rahbar

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A ruler from the fortnight's low to its high

The stochastic oscillator is a reading of where today's close sits in the range of the last fourteen days. Take the lowest low of those days and their highest high, lay a ruler from one to the other marked 0 to 100, and read the close off it. For the euro on 1 July 2025 the lowest low was 1.14459, on 19 June, and the highest high 1.18295, on 1 July itself; the close of 1.18052 sat at 94 on the ruler. The indicator smooths that over three days, which gives 94.1, and draws a three-day average of it beside it, 92.2.

A lift in a building

The picture is a lift in a building. The ground floor is the lowest low of the last fourteen days and the top floor is their highest high, and the lift is today's close: the stochastic is the floor it has stopped on, as a number from 0 to 100. On 1 July the lift stood at 94, just under the roof. The building is only fourteen days tall. Tomorrow a new high may add a floor on top, or an old low may drop off the bottom, and the same close would then read a different floor.

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