How to know if an indicator is "heading up" or "heading down"?

[[Deleted]]

Hello,

I was wondering what is the most reliable way of solving the following problem:

I look at a chart for which I have attached a Stochastic indicator. As price moves, the two lines in the indicator are also moving up and down... However, at certain points I want to know if:

a) both of the lines are "heading upwards"
b) or both of the lines are "heading downwards"

I think this is much more than just checking the current value. My guess is that I store the history of the Stoch indicator for 4-5 bars in the past, and say that:

If a,b,c,d,e are history data for Stoch indicator for the past 4 finished candles (a,b,c,d) and the current unfinished candle (e), then at any given time, I can decide that the lines in Stoch indicator are "heading up" if (a<b<c<d<e) and are "heading down" if (a>b>c>d>e)...

Is that correct? Or is there a more elegant way of deciding this?

Thanks a bunch if you can throw some help at me.

[MaxPayne]

Hi,

this is correct iff your definition of "going up", is "go up continuously for 4 bars in a row" (not counting the initial bar).

Another definition could be the difference between bar a and bar e. This way you'll have some leeway, if the price "wiggles".

Cheers!

Max