Stochastic oscillator
An indicator showing where the closing price sits inside the range between the high and the low of a chosen period.
Formula
H and L are the high and the low over n intervals; the indicator's second line is a smoothed version of the first.
How to read the number
It answers one narrow question: did the interval close nearer the top or nearer the bottom of the recent range.
When the metric lies
Also known as: stochastics