ExtremeValueKSignal(String,Series,Double,Double,Int32) Method
Implements a general framework for producing extreme value trading signals using Stochastic indicators.
Syntax
Parameters
- seriesName
- The name of the series which will be displayed on the chart, i.e. its label.
- s
- An 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.
Return Value
-1, 0, 1 - this method returns either -1, 0, 1 to indicate that either a sell, no action or buy signal was generated.
Remarks
Note, that the general ideea of this approach is to seek points which are oversold or over brought levels which are turning.
Methodology
Buy when the the Stochastic %K 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.
Requirements
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
See Also