A Stochastic Indicator is a momentum oscillator used to measure the level of the closing price of a cryptocurrency relative to its price range over a specific period. It helps traders identify potential reversal points and gauge whether an asset is overbought or oversold.The indicator consists of two lines: the %K line, which represents the current closing price relative to the price range, and the %D line, a moving average of the %K line. Both lines are plotted between 0 and 100. When the %K line crosses above the %D line, it can signal a buying opportunity, suggesting that prices may rise. Conversely, if the %K crosses below the %D line, it may indicate a selling opportunity, suggesting that prices could fall. Traders often look for levels above 80 as overbought and below 20 as oversold, helping to make informed decisions based on market momentum. Overall, the Stochastic Indicator is valuable for identifying trends and potential entry and exit points in trading strategies.