When Slow Stochastic is selected, the system internally calculates the Fast Stochastic, however, only the Slow %K and Slow %D lines are displayed on the screen.
Slow %K - Is equal to the Fast %D.
Slow %D - Is a Moving Average of Slow %K values. The default for Slow %D is a Smoothed 3 Period Moving Average.
Users can choose between the Original and the Simple Algorithms. Generally, the simplified will be more responsive to price changes. The formulas for each are:
Original
K:= (MA(Close(@)- LoLevel(@,10),Smo,3)/ MA(HiLevel(@,10)- LoLevel(@,10),Smo,3))*100;
D:= MA((MA(Close(@)- LoLevel(@,10),Smo,3)/MA(HiLevel(@,10)-LoLevel(@,10),Smo,3)),Smo,3)*100;
Simplified
K:= MA(((Close(@)- LoLevel(@,10))/ (HiLevel(@,10)- LoLevel(@,10))),Smo,3)*100;
D:= MA(MA(((Close(@)- LoLevel(@,10))/ (HiLevel(@,10)- LoLevel(@,10))),Smo,3),Smo,3)*100;
Original Algorithm = [Moving Average (Closing Range)]/[Moving Average (Total Range)]
Simplified Algorithm = Moving Average [(Closing Range/Total Range)]
Closing Range = Close – Range Minimum
Total Range = Range Maximum – Range Minimum
Slow Stochastics Parameters
|
Parameter |
Description |
|
Display |
Opens sub-window to set parameters •Color = Line color. •Weight = Line thickness. •MarkIt = Opens Specify Conditions window. •Display = Line style: line or histogram base 0 or base 50. •ShareScale = Determines whether sharing of the vertical scales between studies is accepted. Auto = System determine whether sharing is feasible. On = Scale is shared regardless of the functions and studies displayed. Off = Scale is not shared. ShareScale must be On if study is overlaid on a study with multiple outputs. |
|
Algorithm |
Values: •Original = smoothing prior to dividing (close - range minimum/range) •Simplified = dividing prior to smoothing |
|
Period |
Number of bars in the lookback range for unseen Fast %K. Needed for calculating the Slow Stochastic. |
|
Price |
Price used to calculate study values. |
|
HiLevel |
Price used for the high level in the range. |
|
LoLevel |
Price used for the low level in the range. |
|
Type |
Moving average calculation. Values: •Simple •Smoothed •Exponential •Weighted •Centered •Median •Trix •Exponential Hull |
|
OB/OS |
Opens sub-window with overbought and oversold parameters: •Color = Select a color for the line. •Weight = Choose a thickness for the indicator. •Type = Choose fixed or dynamic. Fixed = uses Level as a fixed OB/OS value. Dynamic = uses Standard Deviation and Lookback for a dynamic OB/OS value:. OB: MA(@,Sim,lookback) + factor * STDDEV(@,lookback) OS: MA(@,Sim,lookback) - factor * STDDEV(@,lookback) where @ is the study •Std Dev = Multiplier used to calculate high and low. •Lookback = Number of bars to compare to the current bar. •Level = Percentage of average OB/OS used to calculate predictor Ob/OS levels. •Display = Click this check box to display the component. •Style = Choose a line style. |