Stochastic Oscillator
The Oscillator compares the most recent close and its past values. The chart of the Oscillator is comprised of two lines: the solid main, %K, and the second dashed line, %D, which is the (Moving Average) of the main.
Parameters:
- N1 - time period for %K.
- N2 - time period for %D.
The slow stochastics (3 period) is assumed. The %D is calculated as a simple Moving Average..
Calculation:
The %K line is calculated at first as:
,
where LowestLow and HighestHigh - are the lowest and highest close for the period N1. Then %D is calculated basing on %K and the second time period:
,
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