01/08/2023
The Stochastic oscillator is a momentum indicator used by forex traders to identify potential trend reversals and turning points in the market. The Stochastic oscillator measures the relationship between the closing price of a currency pair and its price range over a specified period. It generates readings between 0 and 100, with values above 80 indicating overbought conditions and values below 20 indicating oversold conditions. Traders analyze the Stochastic oscillator to identify potential entry or exit points based on overbought or oversold market conditions.