stochastics oscillator

By
Doug Ashburn
Doug AshburnExecutive Editor, Britannica Money

Doug is a Chartered Alternative Investment Analyst who spent more than 20 years as a derivatives market maker and asset manager before “reincarnating” as a financial media professional a decade ago.

Before joining Britannica, Doug spent nearly six years managing content marketing projects for a dozen clients, including The Ticker Tape, TD Ameritrade’s market news and financial education site for retail investors. He has been a CAIA charter holder since 2006, and also held a Series 3 license during his years as a derivatives specialist.

Doug previously served as Regional Director for the Chicago region of PRMIA, the Professional Risk Managers’ International Association, and he also served as editor of Intelligent Risk, PRMIA’s quarterly member newsletter. He holds a BS from the University of Illinois at Urbana-Champaign and an MBA from Illinois Institute of Technology, Stuart School of Business.

Fact-checked by
Jennifer Agee
Jennifer AgeeCopy Editor/Fact Checker

Jennifer Agee has been editing financial education since 2001, including publications focused on technical analysis, stock and options trading, investing, and personal finance.

The stochastic oscillator is a momentum indicator that looks at price relative to the price range over a specific period. The stochastic oscillator can be used to identify trend reversals and overbought or oversold levels.