Description
The Stochastic Overbought/Oversold strategy is based on the Stochastic Full technical indicator. The Stochastic Full study is an oscillator based on the observation that as prices increase, closing prices tend to be closer to the upper end of the price range. In downtrends, the closing price tends to be near the lower end of the range. The strategy adds a simulated Buy order when the Stochastic Full crosses above the oversold level and a simulated Sell order when it crosses below the overbought level.
Input Parameters
| Parameter | Description |
|---|---|
price h
|
Type of price whose highest value is found on the specified period. |
price l
|
Type of price whose lowest value is found on the specified period. |
price c
|
The latest closing price. |
k period
|
Number of bars used to calculate the FastK. |
slowing period
|
The period used for averaging the Stochastic Fast. |
over bought
|
Defines the overbought level. |
over sold
|
Defines the oversold level. |
average type
|
The type of moving average to be used in calculations: simple, exponential, weighted, Wilder's, or Hull. |