Stochastics are an oscillator. They consist of two curves called the %K line and the %D line, and are controlled through two parameters, n and m, specifying a number of periods. Both the %K and %D lines are plotted on a scale of 0 to 100. They measure where the closing price is in relation to the total price range of the selected number of periods.
It is based on the assumption that in a rising market the price(s) will close near the high of the range and in a declining market the price(s) will close near the low of the range.
It is based on the assumption that in a rising market the price(s) will close near the high of the range and in a declining market the price(s) will close near the low of the range.
The Stochastic Oscillators are typically plotted as 2 lines: %K and %D. %K is the main (fast) line and %D is the signal (slow) line.
The Fast Stochastic Oscillator is calculated by the formula:
The Fast Stochastic Oscillator is calculated by the formula:
Fast %K = ((Today’s Close – Lowest Low in %K Periods) / (Highest High in %K Periods – Lowest Low in %K Periods)) * 100
%D = 3-period simple moving average of Fast %K
More information at : Stochastic FAST | Nifty Live Charts
No comments:
Post a Comment