A conventional stochastic oscillator measures the current distance between a top and bottom value.
Stock prices are however logarithmic for example when dividend yields are 0.2% and double up to 0.4% likely the stock prices will halve. In a similar manner to how stock prices would halve if the yield rose from 2% to 4%
Its more appropriate therefore to not use
( current - bottom ) / ( top - bottom )
for a stochastic oscillator against stocks, but instead use a log version of that.
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