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This page contains the formula for Stochastic Oscillator and you can download the formula in Excel spreadsheet.

Stochastic Oscillator

Stochastic Oscillator was introduced by George Lane in 1950s, it's a momentum indicator use to compare the closing of a stock to its price range over a given time span. The advantage of this indicator is that the sensitivity of the stock movements can be reduced by adjusting the time period in the calculation.

Formula:

%K = 100 ( C - L14) / ( H14 - L14)
%D = SMA3 ( %K )

%K = Fast Stochastic, %D = Slow Stochastic
C = Latest close
L14 = Lowest close of the 14 previous trading session
H14 = Highest close of the 14 previous trading session
SMA3 = Simple Moving Average for 3 days

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