Description
The Stochastic Fast study is a momentum oscillator based on the observation that in an uptrending market, prices tend to close near the upper end of the price range. In downtrends, close prices are often seen approach the lower end.
The oscillator is made up of two lines bound in the range from 0 to 100. By default, the FastK is the ratio of the difference between the current close and the lowest low on a period to the difference between the highest and the lowest prices on the same period. Basically, this formula positions the closing price in the total price range for this period, on a percentage basis. Applying a moving average to the FastK produces the FastD line. Crossovers of either line with overbought/oversold levels may provide important signals. Actual indication of the crossovers can be enabled by adjusting the show breakout signals parameter value.
See also: StochasticSlow, StochasticFull.
Input Parameters
| Parameter | Description |
|---|---|
over bought
|
The overbought level value. |
over sold
|
The oversold level value. |
k period
|
The period for which the highest and the lowest price values are to be found. |
d period
|
The length of the moving average to be applied to the FastK value. |
price h
|
The type of price whose highest value is to be found on the specified period. |
price l
|
The type of price whose lowest value is to be found on the specified period. |
price c
|
The type of price whose latest value is to be found. |
|
|
The type of moving average to be used in calculations: simple, exponential, weighted, Wilder's, or Hull. |
show breakout signals
|
Controls indication of main plot crossovers with overbought/oversold levels. |
Plots
| Plot | Description |
|---|---|
FastK
|
%K value, the ratio of difference between current close and lowest price to difference between highest and lowest prices. |
FastD
|
%D value, 'd period' moving average of FastK. |
OverBought
|
The overbought level. |
OverSold
|
The oversold level. |
UpSignal
|
If enabled, displays an up arrow every time either of the main plots crosses above the oversold level. |
DownSignal
|
If enabled, displays a down arrow every time either of the main plots crosses below the overbought level. |
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.