Stochastic Slow

stoc_sl

Function Name: stoc_sl

Tags: None

Category: Momentum

The Stochastic Slow indicator is an oscillator that works similarly to the Relative Strength Index. It plots between 0 and 100; however, its overbought/oversold boundaries are wider which tend to make this oscillator more volatile. The Stochastic Slow is a smoother version of the Stochastic Fast.

The Stochastic Slow indicator calculates the location of a Close price in relation to its range over a period of bars. The default settings are to use the most recent 14 bars (k_period), the High and Low of that period to establish a range and the Close as the current price.

This calculation is then indexed, smoothed and plotted as %KS. A smoothed average of %KS, known as %DS, is also plotted. %KS and %DS plot as oscillators with values from 0 to 100. The direction of the Stochastic should confirm price movement. For example, rising Stochastic confirms rising prices.

Stochastic can also help identify turning points when there are non-confirmations or divergences. For example, a new high in price without a new high in Stochastic may indicate a false breakout. Stochastic is also used to identify overbought and oversold conditions when the Stochastic reaches extreme highs or lows. Additionally, %KS crossing above the smoother %DS can be a buy signal and vice versa.

 

Link: http://www.onlinetradingconcepts.com/TechnicalAnalysis/Stochastics.html

 

Parameters

k_period

 

Default Value: 14  |  Minimum: 2  |  Maximum: 9999

 

Type: Numeric

d_period

 

Default Value: 3  |  Minimum: 2  |  Maximum: 9999

 

Type: Numeric

k_SlowingPeriod

 

Default Value: 3  |  Minimum: 2  |  Maximum: 9999

 

Type: Numeric

upperLevel

 

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

 

Type: Numeric

lowerLevel

 

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

 

Type: Numeric