Stochastic Oscillator next, of course!

(N.B. Double click on graph to download & enlarge)

When I first came across the term "Stochastic Oscillator".. it sounds rather abstract & bombastic! Was it related to the study of Stochastic processes as in Statistics?

No, it turns out to be another simple idea.
It has 3 parameters: Stoch(5,3,3) - as default values

If you examine its computational method, again it is a moving window tracking the last few data elements. The first parameter specify the window width, 5 candle bars (as in default setting).

The Stochastic value, named %K, is the ratio of:
((Cp)/(H-L)) x 100%
where:
Cp is (closing price of last candle - L); L being the lowest price of the 5 candles
(H-L) is price range i.e. difference of the highest & lowest of candles prices in the window

Expressed as %, hence its values lies (or normalized) between 0% to 100% always.

What does it tell us?
1) It has a short memory - only 5 candle bars as in default settings.
2) It tracks the short term variation of the price movements.

A simplistic view is the price movement consists of 2 main components, short term price variations (or waves) sits on an underlying price trend (e.g. revealed by MA trend indicators).
The Stochastic indicator attempts to remove the underlying "trend information" showing the short term price cycle, centers at 50%. It's algorithm is more effective in tracing through cyclic variation than simply taking the difference between the data & MA trend lines; as it magnifies small variations and compresses large variations adaptively.

The 2nd parameter is for the MA of the Stochastic line, named %D. Again the filtered signal line, MA(3) of the Stochastic, is introduced to generate crossing signals to indicate trend changes.

The 3rd parameter has a value range of 1 - 3; is said to be for "internal smoothing" of the Stochastic. Value of 1 means fast Stochastic and 3 for a slow Stochastic.

Hope the few reviews help to demystify the inner workings of some key Technical Indicators.