Stochastic Oscillator: Momentum Within a Price Range

The Stochastic Oscillator compares a closing price with its recent high-low range.

It's often used to study momentum and potential overbought or oversold conditions.

But an extreme reading doesn't guarantee a reversal.

During a strong trend, the indicator can remain in an extreme zone for a while.

I pay attention to the broader trend, important price levels, and whether price confirms a potential change in direction.

The indicator can support analysis, but it shouldn't be used as a standalone buy-or-sell instruction.