StochasticD
ProRealTime v11Returns the Stochastic D (signal line) from the stochastic oscillator indicator.
Syntax:
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1 |
StochasticD[period,%Kperiod,%Dperiod](price1,price2,price3) |
Where:
- period= calculation period of the stochastic oscillator (default period is 14)
- %Kperiod= moving average period used to smoothed the stochastic value (default is 3, 1=Fast, 3=Slow)
- %Dperiod= smoothed period of the signal line of the stochastic oscillator
- “price1”, “price2” and “price3” are optional. By default the stochasticD will be calculated with Close on the High/Low scale (same as the internal platform indicator). But you can adjust it with any other price or data series (e.g. StochasticD[N,K](close,close,close) or StochasticD[N,K](var1,var2,var3) )
Fast/Slow Stochastics Calculation : The first parameter is the number of days used to calculate %K, the second is the number of days to be considered for the moving average of %K (generally 1 for Fast Stochastic and 3 or 5 for Slow Stochastic), the third is the number of days to be considered for the moving average of %D.
Interpretation : It is an overbought/oversold indicator depending on its position relative to the 0 level. It also gives good divergence signals.
A bullish divergence occurs when the stock price makes new lows while the Stochastic fails to make new lows.
A bearish divergence occurs when the stock price makes new highs while the Stochastic fails to make new highs.
