Stochastic Oscillator (STO)

Warmup Window

Minimum bars needed: k_period + k_slowing + d_period bars (default params: 20 bars (k_period=14, k_slowing=3, d_period=3))

The raw %K needs k_period bars, then SMA smoothing adds k_slowing, then %D adds d_period. After warmup, both lines update in real-time.

✅ After the warmup window is filled, this indicator produces a new value on every incoming bar in real-time.

Lagging Indicator

The %K and %D lines lag behind price momentum.

Event	Lag	Detail
%K reaches overbought (>80) / oversold (<20)	≈ `k_period / 2 + k_slowing / 2` bars	Rolling HH/LL over k_period, then SMA smoothing with k_slowing
%K / %D crossover (buy/sell signal)	≈ `k_period / 2 + k_slowing / 2 + d_period / 2` bars	d_period adds extra smoothing on top of %K

Formula for custom params: lag ≈ k_period / 2 + k_slowing / 2 (+ d_period / 2 for %D)

The Stochastic Oscillator (STO) is a momentum indicator that compares a particular closing price of an asset to a range of its prices over a certain period. It is used to identify overbought or oversold conditions in a market. The STO consists of two lines: %K and %D, where %K is the main line and %D is the signal line.

def stochastic_oscillator(
    data: Union[pd.DataFrame, pl.DataFrame],
    high_column: str = "High",
    low_column: str = "Low",
    close_column: str = "Close",
    k_period: int = 14,
    k_slowing: int = 3,
    d_period: int = 3,
    result_column: Optional[str] = None
) -> Union[pd.DataFrame, pl.DataFrame]:

Example

from investing_algorithm_framework import download
from pyindicators import stochastic_oscillator
pl_df = download(
    symbol="btc/eur",
    market="binance",
    time_frame="1d",
    start_date="2023-12-01",
    end_date="2023-12-25",
    save=True,
    storage_path="./data"
)
pd_df = download(
    symbol="btc/eur",
    market="binance",
    time_frame="1d",
    start_date="2023-12-01",
    end_date="2023-12-25",
    pandas=True,
    save=True,
    storage_path="./data"
)
# Calculate Stochastic Oscillator for Polars DataFrame
pl_df = stochastic_oscillator(pl_df, high_column="High", low_column="Low", close_column="Close", k_period=14, k_slowing=3, d_period=3, result_column="STO")
pl_df.show(10)
# Calculate Stochastic Oscillator for Pandas DataFrame
pd_df = stochastic_oscillator(pd_df, high_column="High", low_column="Low", close_column="Close", k_period=14, k_slowing=3, d_period=3, result_column="STO")
pd_df.tail(10)

STO

Chart Parameters

The image above uses the following parameters:

Parameter	Value
`k_period`	`14`
`k_slowing`	`3`
`d_period`	`3`