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Written by Grace
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Wednesday, 27 August 2008 |
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The Stochastic Oscillator shows closing price relative to the range of prices over a user-determined number of periods. Developed by George Lane, it is widely followed and is interpreted in a similar manner to RSI. Signals can be given from the crossing of thresholds, crossing of one or more of its own smoothings, and/or divergence with price. It is represented by three lines: %K, %D, and %D slowing. The solid line is the %K line, the dotted line is the %D line, and the dashed line is the %D slowing line. This version uses both %K and %D on the same plot. %D is the dotted line. Sell signals are generated when %K drops below %D while still above the threshold of 80. Similarly, Buy signals occur when %K rises above %D while still below the threshold line of 20. | Copy and paste this Fast Stochastic formula into the Indicator Builder in your MetaStock.... | Per1:=Input("length of stoch",1,100,5); ((CLOSE - LLV(L,Per1))/(HHV(H,Per1)-LLV(L,Per1)))*100; Mov((((CLOSE - LLV(L,5))/(HHV(H,5)-LLV(L,5)))*100),3,S); 80; 20 If you want share your own MetstockTM formula with others users send me an email |
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Last Updated ( Sunday, 03 May 2009 )
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