Showing posts with label Stochastic Oscillator. Show all posts
Showing posts with label Stochastic Oscillator. Show all posts

Thursday, January 2, 2020

Presentation

These indicators are numerous but only a few of them are commonly referred to. They correspond to the graphical representation of mathematical calculations. The latter represents the prices evolution, not their absolute level. They are called oscillators, as they correspond to an estimate of market tensions and behave like a derivative function.

Stochastic Oscillator

The Stochastic Oscillator compares where a security's price closed relative to its trading range over the last x-time periods.
The formula for the %K parameter of the Stochastic is :