Stochastic Slow Oscillator
The Stochastic Oscillator was promoted by Dr. George Lane in the 1950s. It is often used to indicate oversold (top of range) or overbought (bottom of range) conditions. The oscillator’s basic calculation is 100*(current price-period low)/(period high-period low). The user may change the method (EMA) and period lengths. This indicator’s definition is further expressed in the condensed code given in the calculation below.
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How To Trade Using Stochastic Slow
Stochastic is a momentum indicator. If the pk crosses above the pd a buy signal is generated. Conversely, if the pk crosses below the pd a sell signal will be given.
How To Access in MotiveWave
Go to the top menu, choose Study>General>Stochastic Slow
or go to the top menu, choose Add Study, start typing in this study name until you see it appear in the list, click on the study name, click OK.
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//method = moving average (ma), user defined, default is EMA
//kPeriod = user defined, default is 14
//maPeriod = user defined, default is 3
//signalPeriod = 3
index = current bar number
//stochasticK=100*(currentClose-lowest)/(highest-lowest); highest and lowest are for kPeriod K = stochasticK(index, kPeriod)); pk = ma(method, index, maPeriod, K); signal = ma(method, index, signalPeriod, pk); pd = signal; buy = crossedAbove(pk, pd); sell = crossedBelow(pk, pd);