ExtremeValueKSignal(Series,Double,Double,Int32) Method

Implements a general framework for producing extreme value trading signals using Stochastic indicators.

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

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

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.

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

Note, that the general ideea of this approach is to seek points which are oversold or over brought levels which are turning.

Methodology

Buy when the the Stochastic %K falls below a specific level (e.g. 20) and then rises above that level. Sell when the Oscillator rises above a specific level (e.g. 80) and then falls below that level. This approach is the preferred method of the Stochastics original creator George Lane.

See Also

Language