Full Stochastic Oscillator

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

 

Parameters

LBperiod

look-back period

 

Default Value: 14  |  Minimum: 1  |  Maximum: 9999

 

Type: Numeric

Kperiod

period of SMA smoothing of %K

 

Default Value: 3  |  Minimum: 1  |  Maximum: 9999

 

Type: Numeric

Dperiod

period of SMA of full %K

 

Default Value: 3  |  Minimum: 1  |  Maximum: 9999

 

Type: Numeric

OverboughtLevel

 

Default Value: 80  |  Minimum: 0  |  Maximum: 100

 

Type: Numeric

OversoldLevel

 

Default Value: 20  |  Minimum: 0  |  Maximum: 100

 

Type: Numeric

ShowFullK

 

Default Value: -1

 

Type: Boolean

ShowFullD

 

Default Value: -1

 

Type: Boolean

ShowLevels

 

Default Value: -1

 

Type: Boolean