Stochastic Indicator Formula

  • Article

The stochastic indicator formula calculates the simple stochastic indicator (%K) and the smoothed stochastic indicator (%D). %D is a moving average of %K. The output is a percentage. A value more than 80% indicates that the current price is close to the price high, and a value less than 20% indicates that the current price is close to the price low.

The stochastic indicator is an indicator of upward and downward market trends.

Formula Details

Syntax

Chart.DataManipulator.FinancialFormula(
    FinancialFormula.StochasticIndicator,
    "PeriodK,PeriodD",
    "High,Low,Close",
    "%K,%D")

Parameters

This formula takes two optional parameters.

  • PeriodK
    Period for calculating %K. The default value is 10.
  • PeriodD
    Period for calculating %D. The default value is 10.

Input Values

This formula takes three input Y values.

  • High
    Daily high price.
  • Low
    Daily low price.
  • Close
    Daily close price.

Output Value

This formula outputs two Y values.

  • %K
    Simple stochastic indicator. The default value is 10.
  • %D
    Smoothed stochastic indicator. The default value is 10.

Remarks

The Line chart type is a convenient chart type to display the formula output.

Example

The following example takes input from Series1's Y values for the daily high, low, and close prices (Series1:Y,Series1:Y2,Series1:Y4), and outputs %K on Series3 (Series3:Y) and %D on Series4 (Series4:Y). It uses a period of 15 days to calculate both %K and %D.

Chart1.DataManipulator.FinancialFormula (FinancialFormula.StochasticIndicator, "15,15", "Series1:Y,Series1:Y2,Series1:Y4", "Series3:Y,Series4:Y")

Chart1.DataManipulator.FinancialFormula (FinancialFormula.StochasticIndicator, "15,15", "Series1:Y,Series1:Y2,Series1:Y4", "Series3:Y,Series4:Y");

See Also

Reference

System.Windows.Forms.DataVisualization.Charting
System.Web.UI.DataVisualization.Charting

Concepts

Financial Formulas
Applying Formulas

Build Date:

2012-08-02