FullStochasticOscillator
Function Name: FullStochasticOscillator
Tags: None
Category: Momentum
Developed by George C. Lane in the late 1950s, the Stochastic Oscillator is a momentum indicator that shows the location of the close relative to the high-low range over a set number of periods. According to an interview with Lane, the Stochastic Oscillator "doesn't follow price, it doesn't follow volume or anything like that. It follows the speed or the momentum of price. As a rule, the momentum changes direction before price." As such, bullish and bearish divergences in the Stochastic Oscillator can be used to foreshadow reversals. This was the first, and most important, signal that Lane identified. Lane also used this oscillator to identify bull and bear set-ups to anticipate a future reversal. Because the Stochastic Oscillator is range bound, is also useful for identifying overbought and oversold levels.
Calculation:
Fast %K = (Current Close - Lowest Low)/(Highest High - Lowest Low) * 100
Full %K = Fast %K smoothed with X-period SMA
Full %D = X-period SMA of Full %K
Parameters:
LBperiod: Look-back period (the period in which highest and lowest are calculated)
Kperiod: MA smoothing parameter for full %K
Dperiod: MA smoothing parameter for full %D
Link: http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:stochastic_oscillator
LBperiod |
look-back period |
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Default Value: 14 | Minimum: 1 | Maximum: 9999 |
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Type: Numeric |
Kperiod |
period of SMA smoothing of %K |
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Default Value: 3 | Minimum: 1 | Maximum: 9999 |
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Type: Numeric |
Dperiod |
period of SMA of full %K |
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Default Value: 3 | Minimum: 1 | Maximum: 9999 |
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Type: Numeric |
OverboughtLevel |
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Default Value: 80 | Minimum: 0 | Maximum: 100 |
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Type: Numeric |
OversoldLevel |
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Default Value: 20 | Minimum: 0 | Maximum: 100 |
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Type: Numeric |
ShowFullK |
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Default Value: -1 |
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Type: Boolean |
ShowFullD |
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Default Value: -1 |
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Type: Boolean |
ShowLevels |
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Default Value: -1 |
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Type: Boolean |