• The Warden Stochastic differs from other stochastics in that it ranks closing prices by assigning a value based on the ranking of the recent close compared to the previous close.

  • Like other stochastics, the Worden version provides overbought and oversold levels as well as potential trading signals using signal line crossovers.
  • A value above 80 is considered overbought, a value below 20 is considered oversold. This is not necessarily a reason to buy or sell. It simply indicates that the price is at the top or bottom of its recent closing price range.