Option Investor
Glossary

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Stochastic Oscillator

The Stochastics Oscillator was developed by Dr. George Lane. The general idea behind the Stochastics Oscillator is that during an upward trend, stocks tend to close near their high and during a downward trend, stocks tend to close near their low. Stochastics are used to measure where a stock's price is in relation to the entire price range over a given time period.