Showing posts with the label stochastic-definition


STOCHASTIC OSCILLATOR   In technical analysis of securities trading, the stochastics oscillator is a momentum indicator that uses support an resistance levels. Dr. George Lane promoted this indicator in the 1950s. The term stochastic refers to the location of a current price in relation to its price range over a period of time. [1] This method attempts to predict price turning points by comparing the closing price of a security to its price range. calculation of stochastics : In working with %D it is important to remember that there is only one valid signal—a divergence between %D and the security with which you are working  A 3-line Stochastics will give you an anticipatory signal in %K, a signal in the turnaround of %D at or before a bottom, and a confirmation of the turnaround in %D-Slow. [3] Typical values for N are 5, 9, or 14 periods. Smoothing the indicator over 3 periods is standard.   Defination : The calculation above finds the range between an a