Market Terms

We don't know everything about the markets.  We're just devoted to learners.  Taken from those smarter than ourselves, here's how we define Stochastics.

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.