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Stochastic Oscillator Slow (STOCH)

For Stochastic there is 4 different lines defined: FASTK, FASTD, SLOWK and SLOWD.

The D is the signal line usually drawn over its corresponding K function.

                 (Today's Close - LowestLow)
FASTK(Kperiod) = --------------------------- * 100
                  (HighestHigh - LowestLow)

FASTD(FastDperiod) = MA Smoothed FASTK over FastDperiod

SLOWK(SlowKperiod) = MA Smoothed FASTK over SlowKperiod

SLOWD(SlowDperiod) = MA Smoothed SLOWK over SlowDperiod

The HighestHigh and LowestLow are the extreme values among the last 'Kperiod'. SLOWK and FASTD are equivalent when using the same period parameters. The following shows how these four lines are typically made available:

Stochastic(Kperiod,SlowKperiod,SlowDperiod) returns the SLOWK and SLOWD.
StochasticFast(Kperiod,FastDperiod) returns the FASTK and FASTD

The Stochastic function correspond to the more widely implemented version found in many software/charting package. The Stochastic Fast is more rarely used because its higher volatility cause often whipsaws.

Interpretation / Algorithm
Technical Analysis Studies [prophet.net]
Technical Analysis A to Z by Steven B. Achelis [equis.com]
Description with math formula [FMLabs.com]

Product ImplementationFunction / Formula / Script / Source Code
Genius Trader [geniustrader.org]PERL Script - GT::Indicators::STO [geniustrader.org]
TA-Lib [ta-lib.org]C/C++ Source Code - TA_STOCHRSI()
C/C++ Source Code - TA_STOCH()
Wealth-Lab [wealth-lab.com]ChartScripts using StockK [wealth-lab.com]
ChartScripts using StockD [wealth-lab.com]

Related Links
Technical Analysis Studies [prophet.net]
Technical Analysis Studies [prophet.net]
Technical Analysis Studies [prophet.net]
Oscillators Part Three - Stochastics by Shaun Taylor [investopedia.com]



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