CrossingSignal(String,Series,Int32,Int32,Int32) Method

Implements a general framework for producing trading signals based on the crossing of two Stochastics.

[Visual Basic]
Overloads Public Shared Function CrossingSignal( _
   ByVal seriesName As String, _
   ByVal s As Series, _
   ByVal noOfPeriods As Integer, _
   ByVal method As Integer, _
   ByVal lengthOfMA As Integer _
) As Series

[C#]
public static Series CrossingSignal( 
   string seriesName,
   Series s,
   int noOfPeriods,
   int method,
   int lengthOfMA
);

Parameters

seriesName

An 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.

s

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

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. 1 = Simple moving average
2. 2 = Geometric moving average
3. 3 = Linearly weighted moving average
4. 4 = Exponentially Weighted Moving average within smoothing fact set to be 0.5.

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

Methodology

Buy when the Stochastic K, crosses above the MA D and sell when the Stochastic K falls below the MA of Stochastic D. Since this approach is prone to being whip-sawed we use two (general) Stochastics so that a MA of the %K Stochastic of the first Stochastic and an even more smoothed second Stochastic. In this case a sell signal is generated if the first (more sensitive) Stochastic cross below the second (smoothed) Stochastic, and a buy signal is generated if the first Stochastic crosses above the second Stochastic.

See Also

FinancialEngine Class  | FinancialEngine Members  | Overload List

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