An oscillating momentum indicator that makes use of support and resistance levels. It is bound within a range of 0 to 100 and used to track the momentum of a price (as opposed to the actual price itself). A stochastic oscillator compares a particular closing price of a security to its range of prices over time. The shorter the amount of time, the more sensitive the oscillator is. The term “stochastic” is used to denote a current price in relation to prices over time.