StochasticExp (Function)
DisclaimerThe StochasticExp series function returns the exponentially smoothed values FastD and SlowD.
Syntax
StochasticExp(PriceH, PriceL, PriceC, StochLength, SmoothingLength1, SmoothingLength2, oFastK, oSlowD)
Returns (Integer)
The oFastD and oSlowD output parameters return the fast and slow averages for the D line. The StochasticExp function itself returns 1.
Parameters
|
Name |
Type |
Description |
|
PriceH |
Numeric |
Specifies which bar value (price, function, or formula) to use for the high in stochastic calculations. |
|
PriceL |
Numeric |
Specifies which bar value (price, function, or formula) to use for the low in stochastic calculations. |
|
PriceC |
Numeric |
Specifies which bar value (price, function, or formula) to use for the close in stochastic calculations. |
|
StochLength |
Numeric |
Sets the number of bars to consider. |
|
SmoothingLength1 |
Numeric |
Sets the constant for smoothing the fast K line. |
|
SmoothingLength2 |
Numeric |
Sets the constant for smoothing the fast D line. |
|
oFastD |
Numeric |
Outputs the value for the fast D line. |
|
oSlowD |
Numeric |
Outputs the value for the slow D line. |
Usage
The Stochastic oscillators indicate overbought and oversold areas in the market, based upon momentum or price velocity.
Stochastics are made up of four individual calculations: FastK, FastD, SlowK, SlowD. The core of the calculations is based upon the FastK value that is calculated in the following manner.
FastK = (C - L)/(H - L)*100… where
L = Lowest Low of a specified period
H = Highest High of a specified period
C = Current bar Close
FastD is a smoothed average of FastK, SlowK is a value equal to FastD, and SlowD is a further smoothed SlowK.
See Multiple Output Function for more information on using output parameters to return values.
Example
Outputs the FastD and SlowD stochastic values to the declared variables over 14 bars using smoothing values of 3..
Vars: oFastD(0), oSlowD(0);
Value1 = StochasticExp(H, L, C, 14, 3, 3, oFastD, oSlowD);
Reference
Takano, Mike. Stochastic Oscillator, Technical Analysis of Stocks and Commodities. April 1991.
Stein, John. The Traders’ Guide to Technical Indicators, Futures Magazine. August 1990.