Knowledge center · Technical analysis
Stochastic (14, 3)
Where today’s close sits inside the last 14 days’ high-low range, 0–100.
Formula
%K = 100 × (close − 14d low) / (14d high − 14d low); %D = 3-day average of %K.
Interpretation
Above 80: closing near the top of the recent range (overbought). Below 20: near the bottom (oversold). Crosses of %K through %D are the classic timing trigger.
What good looks like
Oversold readings in an uptrend — the highest-quality mean-reversion setup.
What bad looks like
Overbought readings with momentum divergence.
Typical range
0–100.
Limitations
Very noisy; in trends it stays pinned just like RSI.
How OmniSignal uses it
Faster than RSI at flagging short-term extremes; useful for entry timing rather than thesis.
Where it enters the score
Not a scoring input.
References
Lane (1950s), popularized in Technical Analysis of Stocks & Commodities
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