For Stochastic Oscillator

columbus

Well-Known Member
#2
Dear All :):)

Can anybody give me details for Stochastic Oscillator.

How Can calculate it manually and how to interprete it.

thanks :)
Please GOOGLE it ,there is wealth of information about it,
especially from wikipedia.
 

SwingKing

Well-Known Member
#5
Dear All :):)

Can anybody give me details for Stochastic Oscillator.

How Can calculate it manually and how to interprete it.

thanks :)
Interpretation: The stochastic typically ranges from 20 to 80. However, some traders also modify it and use it from 30 to 70. When the oscillator is below the 20 (30) level, then the stock is assumed to be in oversold region. However, when the oscillator is above 80 (70) region, then the stock is assumed to be overbought.

Word of Caution: Stochastic is a very poor indicator in trending market. The oscillator will remain in the oversold region during down trend whilst the stock continues to decline and during uptrend the oscillator will remain in overbought zone and the stock will continue to rally.

Best time to use it: Stochastic oscillator is best used during range bound sessions. When the stock operates in a range (non-trending), then stochastic oscillator is quite efficient in the overbought and oversold zones
 
#6
Dear Columbus
As per S O formula 5,3,3 1st signal genrates at 8th bar while in metastock it gives 1st signal at 9th bar.:confused::confused:

where I making mistake????
5 denotes: Each value of sto is calculated using 5 bars.
3 denotes: After getting 3 such calculated values, an averge is returned as final result. thats why it take 8 bars essentially to get the signal(It is system dependent whether to give signal on resultant bar or on next bar. Ideally, signal/trade should be taken at the bar right after signal generation)...
Last 3 denotes: If u r using fast or slow sto
 
#7
5 denotes: Each value of sto is calculated using 5 bars.
3 denotes: After getting 3 such calculated values, an averge is returned as final result. thats why it take 8 bars essentially to get the signal(It is system dependent whether to give signal on resultant bar or on next bar. Ideally, signal/trade should be taken at the bar right after signal generation)...
Last 3 denotes: If u r using fast or slow sto
Dear Yogesh,
thanks for interpritation in so simple words.
But my problem still stand ??

Where i making mistake:annoyed::annoyed:
 

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