CrossingExtremeSignal(Series,Double,Double,Int32,Int32,Int32) Method

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.

[Visual Basic]
Overloads Public Shared Function CrossingExtremeSignal( _
   ByVal s As Series, _
   ByVal extremeLow As Double, _
   ByVal extremeHigh As Double, _
   ByVal noOfPeriods As Integer, _
   ByVal method As Integer, _
   ByVal lengthOfMA As Integer _
) As Series

[C#]
public static Series CrossingExtremeSignal( 
   Series s,
   double extremeLow,
   double extremeHigh,
   int noOfPeriods,
   int method,
   int lengthOfMA
);

Parameters

s

The name of the series which will be displayed on the chart, i.e. its label.

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 Type

-1, 0, 1 - this method returns either -1, 0, 1 to indicate that either a sell, no action or buy signal was generated.

Remarks

Trading System Rules

This system generates buy and sell signals respectively when one of the following is triggered:

Buy Signal: When the fast K Stochastic crosses above the slow D Stochastic and this crossing takes place at a value lower than the extremumLow, then a buy signal is generated.
Sell Signal: When the fast K Stochastic crosses above the slow D Stochastic and this crossing takes place at a value higher than the extremumHigh, then a sell signal in generated.

See Also

Language