Studies Calculations

Stochastics (%K and %D)

Overview

What is a Stochastic?

Stochastics is a momentum oscillator.  It compares the Close of the day to the price range of a specified number of periods.  

Formula

%K = ((C-L)/(H-L))*100

n is the period length.

%D = MA (%K) over period N

Where C is the closing price, L is the lowest price, and H is the highest price over period N.

MA is Moving Average.

Parameters

The price series (close values) and the period n for %K and %D are configurable input parameters.

Reference  

George C. Lane, Investment Educators, 719 South Fourth Street, Watseka, IL 60970, USA

www.lanestochastics.com