A technical analysis model that suggests that the Closing Price of a security will increase relative its price range for a given period. The Stochastic Oscillator is comprised of a solid line (referred to as %K, which measures the relationship between a security's closing price and its trading range for a specific period) and a dotted line (referred to as %D, which is a simple moving average of %K). The oscillations of the two lines generate buy and sell signals, as they fluctuate within a scale of zero to 100. A result below 30 indicates an oversold condition and a result above 70 indicates an overbought condition.
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