Developed by George C. Lane in the late 1950s
Stochastic shows the current close price relative to the high/low range over a set number of periods.
Closing levels that are consistently at the top of the range indicate accumulation (buying pressure), above 80 indicates the stock is overbought.
Closing levels that are consistently at the bottom of the range indicate distribution (selling pressure), below 20 indicates the stock has been oversold.
It is quite a popular indicator for intra-day and end of day traders, as it is intended to be traded for the short- term.
The Stochastic Oscillator is displayed as two lines. The main line is called "%K." The second line, called "%D," is a moving average of %K. The %K line is displayed as a solid line and the %D line is displayed as the dotted line within Sharechart.
ShareChart Default: 14
To change the above setting, go to Settings>Indicators>Stochastic Oscillator. The above setting was 20 period.