// TRADING TERMINOLOGY
What is Stochastic Oscillator?
A momentum indicator comparing a particular closing price of a security to a range of its prices over a certain period of time.
In-Depth Explanation
The sensitivity of the oscillator to market movements is reducible by adjusting that time period or by taking a moving average of the result. It is used to generate overbought and oversold trading signals.
Practical Example
"The Stochastic Oscillator crosses below 80, giving a potential sell signal."
Related Terms
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