Stochastic is an indicator that try to draw the mean price over short and long period while making attempt to identify potential revert in the so called overbought and oversold level.
In this indicator, the price is replace with its mean calculated by the division of the highest and lowest price over N periods. It makes the stochastic less noisy but also more laggy.
It could be used to find good entries and re-entries on a clear identified trend.
Of course, because stochastic is built to find reversals points, this indicator will find its powerness in flat range.
// period = 50
// N = 10
// K = 20
ll = lowest[period](low)
hh = highest[period](high)
mid = (ll+hh)/2
sto = SmoothedStochastic[N,K](mid)
avg = exponentialaverage(sto)
sig = exponentialaverage[N](sto)
RETURN -sto coloured(200,20,3), -avg as "mean", -sig as "signal line"
No information on this site is investment advice or a solicitation to buy or sell any financial instrument. Past performance is not indicative of future results. Trading may expose you to risk of loss greater than your deposits and is only suitable for experienced investors who have sufficient financial means to bear such risk.ProRealTime ITF files and other attachments :