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| Stochastic (STC) |
| The Stochastic, an overbought or oversold indicator, is plotted in two lines, %K (fast line) and %D (Slow line). STC lies between 0 and 100. When the fast line, %K, rises above the slow line, %D, buying signal may be indicated, and %K drops below %D represents selling signal. The combination of %D and %K is 5 and 18 respectively. Overbought and oversold conditions are indicated when their values are larger than 80 and smaller than 20 respectively. |
This indicator is calculated with the following formula:
Figure: A STC chart of Hang Seng Bank
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Chart Guide
