New Stochastic Oscillator
The Stochastic Oscillator is a momentum indicator that uses support and resistance levels. The term "stochastic" refers to the point of a current price in relation to its price range over a period of time. You can use a New Stochastic in the same way as classical one: Overbought and Oversold areas to make a Buy or Sell orders. This new indicator shows all variety of Fibonacci Levels (from 23.6 to 76.4) which can be used as Overbought and Oversold levels as well as points to close an open position. You can compare the New Stochastic with the old one to see all accomplishments.
- kPeriod = 5 - K period
- dPeriod = 3 - D period
- slow = 3 - slowly
- maMethod = MODE_SMMA - smoothing type as an input parameter
- appPrice = PRICE_CLOSE - there are seven predefined identifiers used to specify the desired price base for calculations
Note: Overbought does not necessarily mean the price will drop immediately and oversold does not mean the price will rally immediately.