Stochastic oscillator – is a technical indicator designed by the president of "Investment Educators" corporation George C. Lane in the end of 1950-s. Stochastic estimates market momentum and shows position of present price against price range (between High and Low) for a definite time period. It is measured in per cent from 0 to 100.
According to George C. Lane, “doesn't follow price, it doesn't follow volume or anything like that. It follows the speed or the momentum of price. As a rule, the momentum changes direction before price.”