Parameters
- s
- A financial series where the first element is the closing price in the last trading period, the second term is the closing price in the previous trading period and so on.
- extremeLow
- This is the level at which the Stochastic is believed to indicate an oversold level. The Stochastic always lies between 0 and 100, and a suggested extreme low value to take is 20.
- extremeHigh
- This is the level at which the Stochastic is believed to indicate an over brought level. The Stochastic always lies between 0 and 100, and a suggested extreme high value is 80.
- noOfPeriods
- An integer which represents the number of periods used over which the closing price is compared.
- method
- Determines the methods used for the evaluation of the moving average in accordance with the following key:
- 1 = Simple moving average
- 2 = Geometric moving average
- 3 = Linearly weighted moving average
- 4 = Exponentially Weighted Moving average within smoothing fact set to be 0.5.
For further details concerning the definition of these moving averages please see the accompanying PDF documentation or the API documentation for SimpleMovingAverage(String,Series,ElementValue,Int32).
- lengthOfMA
- The number of periods over which the moving average is considered.
Return Value
Methodology
Buy when the Oscillator the Stochastic %D falls below a specific level (e.g. 20) and then rises above that level. Sell when the Oscillator rises above a specific level (e.g. 80) and then falls below that level. This approach is the preferred method of the Stochastics original creator George Lane.
Target Platforms: Windows 7, Windows Vista SP1 or later, Windows XP SP3, Windows Server 2008 (Server Core not supported), Windows Server 2008 R2 (Server Core supported with SP1 or later), Windows Server 2003 SP2