Stochastic Oscillator

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The Stochastic Oscillator function compares the close price of a stock against its price range (high-low) over a specified number of time periods. Applications of Stochastic Oscillator include the generation of buy and sell signals.

1. Syntax

Stochastic Oscillator:

STOCOSC(d0,d1,d2,s0,s1)

Trigger Line:

STOCOSCTRG(d0,d1,d2,s0,s1)

2. Input

The Stochastic Oscillator functions require the following input series:

  • d0 - High data values - The first set of data values for which the Stochastic Oscillator formula is calculated, usually the daily high price of a stock.
  • d1 - Low data values - The second set of data values for which the Stochastic Oscillator formula is calculated, usually the daily low price of a stock.
  • d2 - Close data values - The third set of data values for which the Stochastic Oscillator formula is calculated, usually the daily close price of a stock.

3. Parameters

The Stochastic Oscillator function has the following parameters:

  • s0 - Look Back Period - The number of time periods for determining the overall high and low values. Default value is 14.
  • s1 - SMA Period - The number of time periods for the simple moving average calculation which is used to generate the trigger line. Default value is 3.

4. Output

The STOCOSC function generates the following output:

  • Stochastic Oscillator - The Stochastic Oscillator result set.

The STOCOSCTRG function generates the following output:

  • Trigger Line - The trigger line is a 3-period, simple moving average that is used to smooth out the Stochastic Oscillator values.

5. See also

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