Skip to content
Reversion Docs

Indicator Formula

Technical Details — Stochastic Oscillator (Stochastic)

Section titled “Technical Details — Stochastic Oscillator (Stochastic)”

Overview

Section titled “Overview”

The Stochastic Oscillator calculation produces a bounded oscillator measuring momentum.

Mathematical Derivation

Step 1 — Calculate Stochastic

Section titled “Step 1 — Calculate Stochastic”

Purpose: Derive the Stochastic Oscillator value.

See the Stochastic Oscillator formula derivation in technical references.

Where:

  • Period parameters control lookback sensitivity

What This Measures: Momentum strength and direction

Compact Formula Summary

Refer to Stochastic Oscillator formula for compact notation.

Defaults: %K Period = 14 bars, %D Period = 3 bars

Complete Calculation Example

See the Stochastic Oscillator technical documentation for worked calculation examples.

Key Takeaways from the Example
  1. Period sensitivity: Shorter periods = more signals, longer = smoother
  2. Threshold selection: Adjust based on asset volatility
  3. Signal line: Smoothed version for crossover timing