The Stochastic Oscillator is a momentum indicator used to measure the speed and change of price movements. It compares a particular closing price of an asset to its price range over a specific period. Typically, this indicator produces values between 0 and 100. Readings above 80 may indicate that an asset is overbought, while readings below 20 can suggest that it is oversold. Traders often use these signals to identify potential reversal points in the market.The Stochastic Oscillator consists of two lines: %K, which reflects the current closing price relative to the price range, and %D, a smoothed version of %K. The interaction of these lines can provide further insights; for example, a bullish crossover occurs when %K crosses above %D, while a bearish crossover happens when %K crosses below %D.By incorporating the Stochastic Oscillator into their analysis, traders can enhance their decision-making skills, identifying trends and potential entry or exit points more effectively.