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Stochastic Oscillator Fast (STOCHF)
Abstract
For Stochastic there is 4 different lines
defined: FASTK, FASTD, SLOWK and SLOWD.
The D is the signal line usually drawn over its corresponding K function.
(Today's Close - LowestLow)
FASTK(Kperiod) = --------------------------- * 100
(HighestHigh - LowestLow) |
FASTD(FastDperiod) = MA Smoothed FASTK over FastDperiod |
SLOWK(SlowKperiod) = MA Smoothed FASTK over SlowKperiod |
SLOWD(SlowDperiod) = MA Smoothed SLOWK over SlowDperiod |
The HighestHigh and LowestLow are the extreme values among the last 'Kperiod'.
SLOWK and FASTD are equivalent when using the same period parameters. The
following shows how these four lines are typically made available:
Stochastic(Kperiod,SlowKperiod,SlowDperiod) returns the SLOWK and SLOWD.
StochasticFast(Kperiod,FastDperiod) returns the FASTK and FASTD
The Stochastic function correspond to the more widely implemented version found
in many software/charting package. The Stochastic Fast is more rarely used
because its higher volatility cause often whipsaws.
Interpretation / Algorithm
Technical Analysis Studies [prophet.net]
Technical Analysis A to Z by Steven B. Achelis [equis.com]
Description with math formula [FMLabs.com]
Related Links
Technical Analysis Studies [prophet.net]
Technical Analysis Studies [prophet.net]
Technical Analysis Studies [prophet.net]
Oscillators Part Three - Stochastics by Shaun Taylor [investopedia.com]
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