Stochastic Fast: Difference between revisions

Revision as of 17:41, 3 October 2024

Stochastic Fast measures the momentum of an asset by comparing its current price to its price range over a specified period, helping identify potential overbought or oversold conditions.

Description

Stochastic Fast calculates the position of the current price in relation to its range over a number of the most recent bars (specified in StochLength input). The calculated values are further indexed and FastK is plotted. FastD is plotted as the smoothed average of FastK. FastK and FastD plot as oscillators with values from 0 to 100.

The Stochastics plot direction may be used to define price movement. For example, rising Stochastics may be a sign of rising prices. Stochastics may also help to determine turning points when there are divergences. For example, a new high in price without a new high in Stochastics may indicate a false breakout. Stochastics are also useful for overbought and oversold conditions when the Stochastics reach extreme highs or lows.

Default Inputs

PriceH( high ) sets the price value used as the upper end of range for FastK calculation.

PriceL( low ) sets the price value used as the lower end of range for FastK calculation.

PriceC( close ) sets the price value used as the the current price for FastK calculation.

StochLength( 14 ) sets the number of bars included in calculation of FastK.

SmoothingLength1( 3 ) sets the number of bars for slowing FastK to FastD.

SmoothingLength2( 3 ) sets the number of bars for slowing FastD to FastK.

SmoothingType( 1 ) – set 1 for original and 2 for legacy.

MedLength( 9 ) sets the number of bars included in calculation of the "medium" average.

OverSold( 20 ) sets the oversold FastK level.

OverBought( 80 ) sets the overbought FastK level.

Plots

Plot1 (FastK, Cyan) – FastK value.

Plot2 (FastD, Red) – FastD value.

Plot3 (OverBot, Dark Green) – overbought level reference line.

Plot4 (OverSld, Dark Green) – oversold level reference line.

All the plots will be displayed in a separate sub chart when the indicator is applied to a chart.

@@ Line 1: / Line 1: @@
+Stochastic Fast measures the momentum of an asset by comparing its current price to its price range over a specified period, helping identify potential overbought or oversold conditions.
+== Description ==
 Stochastic Fast calculates the position of the current price in relation to its range over a number of the most recent bars (specified in StochLength input).
-The calculated values are further indexed and FastK is plotted. FastD is plotted as the smoothed average of FastK. FastK and FastD plot as oscillators with values from 0 to 100.
+The calculated values are further indexed and FastK is plotted. FastD is plotted as the smoothed average of FastK. FastK and FastD plot as oscillators with values from 0 to 100.<br><br>
-<br>
 The Stochastics plot direction may be used to define price movement. For example, rising Stochastics may be a sign of rising prices.
 Stochastics may also help to determine turning points when there are divergences. For example, a new high in price without a new high in Stochastics may indicate a false breakout. Stochastics are also useful for overbought and oversold conditions when the Stochastics reach extreme highs or lows.
@@ Line 8: / Line 10: @@
 == Default Inputs ==
-'''PriceH (High)''' - price value used as the upper end of range for FastK calculation.<br>
+'''PriceH( high )''' sets the price value used as the upper end of range for FastK calculation.<br><br>
+'''PriceL( low )''' sets the price value used as the lower end of range for FastK calculation.<br><br>
-'''PriceL (Low)''' - price value used as the lower end of range for FastK calculation.<br>
+'''PriceC( close )''' sets the price value used as the the current price for FastK calculation.<br><br>
+'''StochLength( 14 )''' sets the number of bars included in calculation of FastK.<br><br>
-'''PriceC (Close)''' - price value used as the the current price for FastK calculation.<br>
+'''SmoothingLength1( 3 )''' sets the number of bars for slowing FastK to FastD.<br><br>
+'''SmoothingLength2( 3 )''' sets the number of bars for slowing FastD to FastK.<br><br>
-'''StochLength (14)''' - number of bars included in calculation of FastK.<br>
+'''SmoothingType( 1 )''' – set 1 for original and 2 for legacy.<br><br>
+'''MedLength( 9 )''' sets the number of bars included in calculation of the "medium" average.<br><br>
-'''SmoothingLength1 (3)''' - number of bars for slowing FastK to FastD.<br>
+'''OverSold( 20 )''' sets the oversold FastK level. <br><br>
+'''OverBought( 80 )''' sets the overbought FastK level.
-'''SmoothingLength2 (3)''' - number of bars for slowing FastD to FastK.<br>
-'''SmoothingType''' - 1 = original, 2 = legacy.<br>
-'''MedLength (9)''' - number of bars included in calculation of the "medium" average.<br>
-'''OverSold (20)''' - oversold FastK level. <br>
-'''OverBought (80)''' - overbought FastK level.
 == Plots ==
-'''Plot1 (FastK, Cyan)''' - FastK value.<br>
+'''Plot1 (FastK, Cyan)''' –  FastK value.<br><br>
+'''Plot2 (FastD, Red)''' –  FastD value. <br><br>
-'''Plot2 (FastD, Red)''' - FastD value. <br>
+'''Plot3 (OverBot, Dark Green)''' – overbought level reference line. <br><br>
+'''Plot4 (OverSld, Dark Green)''' – oversold level reference line.
-'''Plot3 (OverBot, Dark Green)''' - overbought level reference line. <br>
-'''Plot4 (OverSld, Dark Green)''' - oversold level reference line.
-<div style="background-color: #E3FBE5;">'''Note''': All the plots will be displayed in a separate sub chart from the price data when the indicator is applied to a chart. </div>
+All the plots will be displayed in a separate sub chart  when the indicator is applied to a chart.
 [[File:Stochastic-Fast-indicator.png|700px|link=https://www.multicharts.com/trading-software/images/3/3d/Stochastic-Fast-indicator.png]]
 [[Category:Pre-built Indicators]]