Description
The Stochastic Full study is a generalized version of the Stochastic Fast and the Stochastic Slow oscillators. The three oscillators are all based on the observationthat in an uptrending market, prices tend to close near the upper end of the price range. In downtrends, close prices are often seen approach the lower end.
The calculation of the Stochastic Full resembles that of the Stochastic Fast and the Stochastic Slow. The first value calculated is %K: by default, it is the ratio of the difference between the current close and the lowest low on a period to the difference between the highest and the lowest prices on the same period. The first main plot, FullK, is produced by smoothing this value with a moving average of choice. The other plot, FullD, is a moving average of FullK over a chosen period. Both lines oscillate in the range from 0 to 100.
The Stochastic Full oscillator may thus act as both the Stochastic Fast and the Stochastic Slow. Setting the slowing period to 1 will eliminate the slowing effect of the first moving average, thus making the formula identical to that of the FastK. Setting the period to 3 will transform the oscillator into the Stochastic Slow. You can also use any custom slowing period.
The analysis technique is the same as in other oscillators: the crossovers of main plots with overbought/oversold levels are normally looked for. Actual indication of the crossovers can be enabled by adjusting the show breakout signals parameter value.
Input Parameters
| Parameter | Description |
|---|---|
over bought
|
The overbought level value. |
over sold
|
The oversold level value. |
k period
|
The period for which the highest and the lowest price values are to be found. |
d period
|
The length of the moving average to be applied to FullK. This produces the FullD plot. |
price h
|
The type of price whose highest value is to be found on the specified period. |
price l
|
The type of price whose lowest value is to be found on the specified period. |
price c
|
The type of price whose latest value is to be found. |
slowing period
|
The length of the moving average to be applied to %K. This produces the FullK plot. |
|
|
The type of moving average to be used in calculations: simple, exponential, weighted, Wilder's, or Hull. |
show breakout signals
|
Controls indication of Stochastic Full crossovers above and below the overbought/oversold levels. Specify for which of the main plots the crossovers are to be indicated. |
Plots
| Plot | Description |
|---|---|
FullK
|
FullK value, 'slowing period' moving average of %K. |
FullD
|
FullD value, 'd period' moving average of FullK. |
OverBought
|
The overbought level. |
OverSold
|
The oversold level. |
UpSignal
|
If enabled, displays an up arrow every time the specified main plot crosses above the oversold level. |
DownSignal
|
If enabled, displays a down arrow every time the specified main plot crosses below the overbought level. |
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.