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1999issue C091-2

Constructing regular and slow stochastic oscillators

Regular percent-k places the close inside a lookback high-low range and scales that range-ratio from 0 to 100. The companion percent-d is then formed either as a ratio of summed range pieces or as an average of an already-formed line, which is how the regular-pair and the slow-pair are distinguished.

  • Regular percent-k is 100 times the close minus the lookback lowest low, divided by the lookback highest high minus lowest low.
  • Regular percent-d can be a ratio of summed range pieces over the slowing-period, and the slow-pair sets percent-k equal to that series before averaging it once more.
  • A recurring construction uses a lookback-length of 5 observations and a slowing-period of 3. Some companion lines use exponential smoothing, while a simple or weighted average can be applied to percent-k.
  • Shortcut-slowing averages percent-k into percent-d and averages that result again. The finished pair is displayed on a fixed scale from 0 to 100.
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Current trackStochastic oscillator170 readings

Regular percent-k from the range-ratio

Regular percent-k is constructed as 100 times the close minus the lookback lowest low, divided by the lookback highest high minus lowest low.

That construction is the range-ratio: the close placed inside the lookback high-low range and scaled onto a 0 to 100 axis. The lookback-length is the number of observations used to find the highest high and lowest low.

Regular percent-d as summed range pieces

Regular percent-d can be constructed as 100 times the slowing-window sum of close minus lowest low, divided by the slowing-window sum of highest high minus lowest low.

In that recipe, percent-d is a companion line formed as a ratio of summed range pieces over a slowing-period. The slowing-period is the window used to sum those range pieces or to average an already-formed stochastic line.

The regular-pair and the slow-pair

The regular-pair is single-bar range percent-k plotted with a slowed percent-d.

In the slow construction, percent-k is defined as the regular percent-d series. Slow percent-d is a moving average of regular percent-d over the slowing-period. That is the slow-pair: percent-k set equal to regular percent-d, then averaged once more for slow percent-d.

Recurring lengths and companion averages

A recurring construction pair uses a lookback of 5 observations and a slowing length of 3.

Some built-in companion lines apply exponential smoothing, while a simple or otherwise weighted average can instead be applied to percent-k.

Shortcut-slowing and reusable range math

A shortcut recipe first forms percent-k, averages it to obtain percent-d, then averages that percent-d again to obtain the slow companion. That shortcut-slowing path averages an already-formed line rather than summing range pieces over the slowing-period.

Wrapping the range math as reusable functions lets the same percent-k and percent-d construction feed other custom studies. The constructed pair is intended to be displayed on a fixed scale from 0 to 100.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
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20011-5 pp.Next on Stochastic oscillatorConstruct a variable-interval simple moving average from stacked extremesThe variable-interval construction interpolates a simple moving-average lookback between the short and long members of a length pair, using the long length at a composite extreme-score high and the short length at a score low.
All readings on this track · 42 readings
  1. 1987Stochastic fast and slow construction as a rebuildable stack
  2. 1989Building the stochastic oscillator from close location
  3. 1990Monthly stochastics as a multi-year bond regime filter
  4. 1990Walk-forward screen for yen indicator rules
  5. 1990Slow stochastic construction for index pullback entries
  6. 1991Random Walk Index construction with an adaptive lookback
  7. 1991Building a two-stage stochastic oscillator from close location
  8. 1992Constructing fast and slow stochastic oscillator lines
  9. 1992Constructing nested stochastic lookbacks
  10. 1994Construct the four-state price-volume rank before filtering it
  11. 1996Crowded stochastics, false breakouts, and hidden stops
  12. 1997Fade and follow entries from stochastic extremes
  13. 1998Oversold confirmation as a staged rule-based-entry case
  14. 1999Constructing regular and slow stochastic oscillators
  15. 2001Construct a variable-interval simple moving average from stacked extremes
  16. 2001Threshold RSI and stochastic setups with next-bar stops
  17. 2001Two tests of a rate-adjusted earnings-yield gap
  18. 2002Constructing a two-line stochastic from a range-normalized close
  19. 2002Inspect mechanical stochastic daytrade rules on one bar
  20. 2003Constructing an adaptive stochastic RSI
  21. 2003Four parameters that construct a stochastic oscillator
  22. 2004Volume breakout as signal, pullback as entry
  23. 2004A first currency-market checklist with two averages and a slow stochastic
  24. 2005Shared-scale cycle indexes with companion oscillators
  25. 2005Current-bar versus prior-bar range construction for the stochastic oscillator
  26. 2005Two-session moving-average pullback short
  27. 2006Market condition as a permission layer for moving averages and oscillators
  28. 2008Lock the stop at support before sizing a stochastic entry
  29. 2010Construct a center-line volume oscillator and read it with a stochastic oscillator
  30. 2010Sharpened RSI turns with rainbow averages and a slow stochastic
  31. 2011Build a Spearman rank oscillator from ordered closes
  32. 2012Gold as a regime-dependent hedge in the euro-area crisis
  33. 2012Pairing moving averages with variable-length stochastics
  34. 2014Two-leg stochastic stress oscillator as a rebuild drill
  35. 2014Ingress dates as price bases for relative strength, stochastics, and moving averages
  36. 2017Constructing a dual EMA stochastic from range normalization
  37. 2018Constructing a two-stage stochastic RSI for comparable price-oscillator divergences
  38. 2018Combining a weekly stochastic, a long moving average, and two-day resistance
  39. 2018Weekly and daily stochastic readings with a long moving average and support
  40. 2018A confirming workflow for rotating from discretionary to staples
  41. 2019Stochastic scan thresholds, averages, and formula syntax
  42. 2020Constructing Slow %K as a two-stage helper
By fieldIndicators and filters682 readingsBy year199959 readings
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