The Fast Stochastic indicator is one of modifications of a popular stochastic oscillator of С. Lane's stochastic that means "fast stochastic". The main objective of the oscillator is definition of overbought / oversold zones of the market after which the price reversal comes.
The Fast Stochastic oscillator formula calculates the ratio of the current close price to the maximum or the minimum for a certain period, thus, the dynamics of the indicator can indicate the speed of the price action.
As a traditional Stochastic, the Fast Stochastic is realized in the chart in the form of %K and %D lines which are calculated using the following formula:
%K[i] = 100*(Price[i] — MaxHigh[N]) / (MaxHigh[N] — MinLow[N]);
%D[i] = MA(%K[i], P);
This is a little modified version of the standard indicator, thus, its signals are represented by crossing of %K and %D lines and also the output from the critical ranges.
The indicator uses SmoothAlgorithms.mqh library classes (must be copied to the terminal_data_folder\MQL5\Include). The use of the classes was thoroughly described in the article "Averaging price series for intermediate calculations without using additional buffers".
Fig.1 The FastStochastic indicator
Translated from Russian by MetaQuotes Software Corp.
Original code: https://www.mql5.com/ru/code/1457
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