Momentum & oscillators · TickAtlas Learn

Stochastic Oscillator (Stochastic)

The Stochastic Oscillator compares the closing price to the price range over a given period. It oscillates between 0 and 100, with %K and %D lines providing crossover signals.

10 min readUpdated 2026-03-21Momentum & oscillators
Stochastic · quick spec
GET /v1/indicator ?symbol=EURUSD&indicator=Stochastic_K&timeframe=H1
Family
Momentum & oscillators
Series
%k · %d
Best timeframes
M15 · H1 · H4
Last updated
2026-03-21

TL;DR

  • Stochastic is a oscillator indicator used in technical analysis
  • Above 80 is overbought; below 20 is oversold. %K crossing %D from below is bullish; from above is bearish.
  • Best timeframes: M15, H1, H4
  • Skip to API docs
Understand

What is Stochastic Oscillator?

The Stochastic Oscillator compares the closing price to the price range over a given period. It oscillates between 0 and 100, with %K and %D lines providing crossover signals.

Calculate

How Stochastic is calculated

formula
%K = (Close - Lowest Low) / (Highest High - Lowest Low) × 100
%D = SMA(%K, 3)

Default period: 14
Interpret

How to interpret Stochastic

Above 80 is overbought; below 20 is oversold. %K crossing %D from below is bullish; from above is bearish.

Apply

Trading strategies using Stochastic

Strategy 1: Stochastic Crossover

Trade when %K crosses %D in overbought/oversold zones.

Entry rules

Buy when %K crosses above %D below 20. Sell when %K crosses below %D above 80.

Exit rules

Exit when opposite zone is reached or on reverse crossover.

Combine

Combining Stochastic with other indicators

Stochastic works best when combined with complementary indicators:

  • Stochastic + RSI: Combine for stronger confluence signals
  • Stochastic + Williams %R: Combine for stronger confluence signals
  • Stochastic + CCI: Combine for stronger confluence signals
Timeframes

Stochastic across different timeframes

Stochastic works across all 7 timeframes but performs best on M15, H1, H4 for most trading styles.

M15H1H4

Learn about all 7 timeframes

Query

Accessing Stochastic via the TickAtlas API

GET https://tickatlas.com/v1/indicator

Python example

python
import requests

url = "https://tickatlas.com/v1/indicator"
headers = {"X-API-Key": "YOUR_API_KEY"}
params = {
  "symbol": "EURUSD",
  "indicator": "Stochastic_K",
  "timeframe": "H1"
}

response = requests.get(url, headers=headers, params=params)
data = response.json()
print(data)

Sample response

200 OK
{
  "success": true,
  "data": {
    "symbol": "EURUSD",
    "indicator": "Stochastic_K",
    "timeframe": "H1",
    "value": 58.43,
    "updated_at": 1711548000,
    "server_time": "2024-03-27T14:00:00+00:00",
    "bid": 1.0856,
    "ask": 1.0857
  }
}
Avoid

Common mistakes to avoid

  • Taking every crossover signal without zone confirmation
  • Using Stochastic in strongly trending markets where it stays overbought/oversold
FAQ

Frequently asked questions

What is the difference between RSI and Stochastic?

RSI measures price velocity while Stochastic measures closing price position relative to the range. Stochastic is more sensitive and generates more signals. RSI is smoother and better for divergence.

Continue learning

From learning to building

Put Stochastic to work in your application.

Sign up with $2.50 of starting credit and query pre-calculated Stochastic data across 7 timeframes, from M1 to D1.