The Stochastic Oscillator is a momentum indicator that compares a stock's closing price to its price range over a certain period. It helps identify if a stock is overbought (too high) or oversold (too low) by measuring its recent price movements. The indicator ranges from 0 to 100, with values above 80 suggesting overbought conditions and below 20 indicating oversold conditions. Traders use it to find potential turning points in the market. It’s a useful tool for spotting when a stock’s price might soon change direction.