The Stochastic Oscillator

The Stochastic Oscillator is a momentum or price velocity indicator developed by George Lane. The calculation is simple:

Where:
K = Lane's Stochastic
C = closing price last
L = then-period low price
H = n-period high price
In addition, methods Lane is especially necessary that K be smoothed twice with three-period simple moving averages. Two other calculations are then made:
SK = three period simple moving average of K
SD = three period simple moving average of SK