OmniSignal
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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

Related concepts

Moving averages (20/50/200)Golden / death crossMACD (12, 26, 9)RSI (14)ADX (14)