stochastic %D slowing?

Discussion in 'Technical Analysis' started by AsaFce, Oct 17, 2003.

  1. AsaFce


    I am familiar with the use of slowing on the %K, but I've been looking at and their "DynaChart " (;0;;;0;;;0;;;SF;5;3;C;15;;DM;15;;) as an example.

    They have Fast StochK(5) and Fast StochD(5,3) line. I like the results I get when I track using that tool of theirs - but I haven't seen a slowing on a %D before - can someone here explain that for me?

    Does that simply mean that the %K value isn't slowed at all, but the %D is calculated off of a 3 period slowed %K moving average?

    Also, when they say that it is slowed, it means they take the average of N days (usually 3), I know that the 3 day slowing period means that 3 days of values are averaged together - but it isn't clear to me how that works into the equation.

    If %K is %K = 100 * [(C-Lx)/(Hx-Lx)] where Lx is the lowest low over the period, and Hx is the highest high over the period and C is the close of the current bar - where does the slowing value of 3 days fit in? And what 3 days? If you are on the current bar, do you include it and 2 days prior and that is the value for the slowing? Then do you move forward one bar (assuming you aren't at "today") and recalculate?

    I like the results of their charts, but I'm programming my own thing that is more complex and I want to be able to reproduce what they are doing - and seeing the slowing on a %D I am not sure where that works in.

  2. jrkob


  3. AsaFce


    So the way they denote the %D having periods of 5 and 3 likely means that the %D is acting on the %K which has a period of 5, and then it smooths that with a period of 3?

    Good link, thanks.