Stock Meadow · Metric glossary · Price trend

Stochastic Oscillator (%K): formula and how to read it

The stochastic oscillator, created by George Lane in the 1950s, shows where the latest close sits within the high-to-low range of the last 14 days. The idea is that in an up-trend closes tend to land near the top of the range, and in a down-trend near the bottom.

What is Stochastic Oscillator (%K)?

Where the close sits in the last 14 days' range, from 0 to 100. The latest close minus the lowest low of the last 14 days, divided by the range between the highest high and the lowest low, times 100. Near 100 means the close is at the top of the recent range and near 0 at the bottom. Traders traditionally call above 80 overbought and below 20 oversold.

Stock Meadow groups it under Price trend, and shows it in tables as Stoch %K 14.

Formula and a worked example

%K = (latest close − lowest low of 14 days) ÷ (highest high of 14 days − lowest low of 14 days) × 100

If the last 14 days ranged from $40 to $50 and the stock closed at $48, %K is (48 − 40) ÷ (50 − 40) × 100 = 80. The numbers are made up for illustration.

How to read it

It runs from 0 to 100. Traders traditionally call above 80 overbought and below 20 oversold, but a strong trend can stay in either zone for weeks. It is a filter only, because neither end is better.

It can be used as a filter and as a column, but not for scoring: it describes a company rather than making it better or worse.

Common pitfalls

  • Overbought and oversold are not forecasts: strong trends often stay in those zones.
  • It only looks at 14 days, so it is a short-term measure.
  • Blank when the stock did not move at all in the 14 days.

How Stock Meadow handles gaps. Usually blank when there are fewer than 14 days of prices, or the price did not move at all.

Treat any single metric as one clue, and read the company's financial statements before drawing a conclusion. Stock Meadow's figures are research tools based on reported data, not investment advice.

Stock Meadow models that use it

No scoring model uses it. It is a filter and a table column only.

Read about every scoring model in How scores work.

Frequently asked questions

What is a stochastic oscillator?
It is a 0 to 100 reading of where the close sits in the recent high-to-low range: 100 means the close is at the top of the range, 0 at the bottom.
Can I score stocks on Stoch %K 14?
It can be used as a filter and as a column, but not for scoring: it describes a company rather than making it better or worse.
Why is Stoch %K 14 blank for some stocks?
It is usually blank when there are fewer than 14 days of prices, or the price did not move at all. Stock Meadow leaves the figure blank rather than guessing it.

Use Stoch %K 14 in Stock Meadow

Filter the whole stock list on Stochastic %K (14 days) and show it as a column in the stock screener. Sign up free, no card needed.

Open the stock screener