​Coal India among 5 stocks reversing from oversold zone, shows stochastic scan​

​Stochastics in technical analysis refers to a set of oscillator indicators pointing at buying or selling opportunities based on momentum. Further, in the world of trading, it is used to link the current price of a security with a range of outcomes that may be possible.

​The tool compares the stock’s particular closing price to the price range over some period. Usually, the period for computing Stochastic is 14 days.

​Formula: %K= 100 [(C-L14)/ ( H14-L14)]

​Herein, C is the closing price, L14 is the lowest price during the reference period of 14 days and H14 is the highest price during the period.

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The indicator helps in generating overbought and oversold trading signals. Also, the indicator measures the momentum of a security’s price for determining trends and predicting reversals.

​Slow Stochastic %K: 33.61| Last close: Rs 676.3

Slow Stochastic %K: 27.61| Last close: Rs 2988.15

​Slow Stochastic %K: 28.57| Last close: Rs 1801.8

​Slow Stochastic %K: 27.89| Last close: Rs 597.6

​Slow Stochastic %K: 20.75| Last close: Rs 229.95