StochasticSlow

Description

The Stochastic Slow study is a 'slower' version of the stochastic oscillator. Both versions are 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.

Akin to the Stochastic Fast, this slower version calculates the %K value: 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. The first main plot is produced by smoothing this value with a 3-period moving average; it is thus called SlowK (compare to FastK in the StochasticFast). The other plot, SlowD is a moving average of SlowK over a chosen period. Both lines oscillate in the range from 0 to 100. 

Although the Stochastic Slow tends to produce fewer signals than the fast oscillator, these signals are often found to be more precise. The analysis technique is, however, the same: the crossovers of main plots with overbought/oversold levels are normally looked for. 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 SlowK 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.

average type

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
SlowK SlowK value, 3-period moving average of %K.
SlowD

SlowD value, 'd period' moving average of SlowK.

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.

You may also like
MomentumPercentDiff
The Momentum Percent Diff is a momentum-based technical indicator. Unlike the regular Momentum ...
SlowRSI
The Slow Relative Strength Index is a version of the classic Relative Strength Index (RSI), ...
FourDayBreakoutLE
The Four-Day Breakout LE strategy is designed by Ken Calhoun. The strategy adds a buy to ...