Stochastic Oversold Alerts
The Stochastic oscillator below 20 signals that a stock is trading near the bottom of its recent price range — a potential short-term bounce setup, especially when the %K line begins to curl upward from the oversold zone.
Get notified when any stock triggers a Stochastic Oversold signal
Search for a stock and set your Stochastic Oversold alert in seconds.
How Stochastic Oversold Alerts Work
The Stochastic oscillator measures where the current closing price sits relative to the high-low range over a lookback period (typically 14 days). A reading below 20 means the stock is closing near the bottom of its recent range — a condition associated with short-term selling exhaustion.
Stochastic is particularly useful for timing entries during pullbacks in uptrends. When a stock in a strong uptrend pulls back and Stochastic drops below 20, then begins to turn back up (%K crossing %D from below), it often marks a tactical low before the uptrend resumes.
Stock Alarm Pro monitors Stochastic %K and %D for all covered stocks. Set alerts for %K below 20 (oversold entry trigger), above 80 (overbought exit trigger), or for the %K/%D crossover in either zone.
Related Alert Types
Frequently Asked Questions
- What is the difference between Stochastic %K and %D?
- %K is the raw Stochastic value — where price sits in its recent range. %D is a 3-period moving average of %K, which smooths out noise. The %K/%D crossover below 20 (bullish) or above 80 (bearish) is the standard signal.
- How does Stochastic differ from RSI?
- RSI measures the speed of price changes. Stochastic measures where price sits within a recent high-low range. They are complementary — both below 30 RSI and below 20 Stochastic together is a stronger oversold signal than either alone.
- Is Stochastic more useful on daily or weekly charts?
- Daily Stochastic is useful for short-term timing (1-5 day trades). Weekly Stochastic is better for swing trading setups (1-4 week holding periods). Stock Alarm Pro currently calculates Stochastic on daily data.
- Can Stochastic stay below 20 for a long time?
- Yes. In strong downtrends, Stochastic can remain below 20 for weeks. The "oversold" reading is most useful in uptrending stocks experiencing a pullback — it loses predictive value in securities that are in confirmed downtrends.
Technical indicators are provided for informational purposes only and do not constitute investment advice. Past signal performance is not indicative of future results. Always conduct your own research before making investment decisions.