MOMENTUM INDICATOR
Stochastic Oscillator
Locates the close within the recent high-low range.
Start with the input, not the story.
Where the latest close sits relative to a chosen lookback range.
Plain-language formula
%K = (close - lowest low) / (highest high - lowest low) x 100; %D smooths %K.
Platform implementations can differ in price input, smoothing, indexing and rounding. Record the exact settings and provider before comparing results.
03 / USEFUL REGIME
Where it may help
Stable ranges and pullback timing inside an independently defined trend.
04 / WEAK REGIME
Where it struggles
Persistent one-way markets and very short lookbacks.
Add a different measurement.
ADX / DMIRange boundariesATR
A complementary tool should answer a different question, such as volatility, regime or position risk. Test the base rule before testing the combination.
The shortcut to avoid
Equating an extreme reading with an immediate reversal.
A testable next step
Require an independently defined range, then compare cross, threshold exit and divergence rules.