This trading system combines the features of the crossing and extremum value trading systems by
requiring that a signal will only be generated if the fast
K Stochastic crosses the slow D Stochastic
either above or below the extremal values.
Syntax
Parameters
- s
- An financial series where the first element is the closing price in the last trading period,
the second term is the closing price in the previous trading period and so on.
- extremeLow
- This is the level at which the Stochastic is believed to indicate an oversold level.
The Stochastic always lies between 0 and 100, and a suggested extreme low value to take is 20.
- extremeHigh
- This is the level at which the Stochastic is believed to indicate an over brought
level. The Stochastic always lies between 0 and 100, and a suggested extreme high value is 80.
- noOfPeriods
- An integer which represents the number of periods used over which the closing price is compared.
- method
- Determines the methods used for the evaluation of the moving average in accordance
with the following key:
- 1 = Simple moving average
- 2 = Geometric moving average
- 3 = Linearly weighted moving average
- 4 = Exponentially Weighted Moving average within smoothing fact set to be 0.5.
For further details concerning the definition of these moving averages please see the accompanying
PDF documentation or the API documentation for SimpleMovingAverage.
. - lengthOfMA
- The number of periods over which the moving average is considered.
Return Value
-1, 0, 1 - this method returns either -1, 0, 1 to indicate that either a sell, no action or buy signal was generated.
Remarks
See Also