FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

LISTED COMPANIES

Submit Post


ADVERTISE
Poll

EXCHANGE RATE PREDICTION: 2022

Chart Pattern - Stochastic Oscillator Vote_lcap11%Chart Pattern - Stochastic Oscillator Vote_rcap 11% [ 21 ]
Chart Pattern - Stochastic Oscillator Vote_lcap20%Chart Pattern - Stochastic Oscillator Vote_rcap 20% [ 38 ]
Chart Pattern - Stochastic Oscillator Vote_lcap30%Chart Pattern - Stochastic Oscillator Vote_rcap 30% [ 58 ]
Chart Pattern - Stochastic Oscillator Vote_lcap39%Chart Pattern - Stochastic Oscillator Vote_rcap 39% [ 76 ]

Total Votes : 193

ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



Latest topics

» AAIC Next multibugger- destnation beyond EXPO.
by Equity Win Today at 12:52 pm

» BIL is still a baby
by Maharaja Today at 12:36 pm

» HOTEL AND TRAVEL SECTOR
by rajini Yesterday at 11:38 pm

» IMF team to visit Sri Lanka by month-end for staff-level agreement - CB Governor
by ADVENTUS Yesterday at 6:32 pm

» LOLC to enter the giant Indian Market
by Chula Yesterday at 6:05 pm

» Stocks on the Radar at CSE
by samaritan Yesterday at 5:28 pm

» SUNSHINE HOLDINGS PLC (SUN.N0000)
by K.R Yesterday at 4:14 pm

» Sri Lanka's first ever fully electric super car 'Vega'
by samaritan Yesterday at 2:19 pm

» SEMB.N and SEMB.X
by adjoseph Yesterday at 1:12 pm

» Forcus on Government controlled entities
by D.G.Dayaratne Yesterday at 9:26 am

» ACL; MELS; HHL; BIL; LWL- STOCKS TO WATCH
by ADVENTUS Wed Aug 17, 2022 10:33 pm

» BAIRAHA FARMS PLC (BFL.N0000)
by arun.cse Wed Aug 17, 2022 4:37 pm

» LIOC ....Get in soon
by arun.cse Wed Aug 17, 2022 3:55 pm

» RENUKA AGRI FOODS PLC (RAL.N0000) TP. 7
by Cma Wed Aug 17, 2022 2:08 am

» Sri Lankan Port Transshipment Hub Threats & Opportunities
by rajini Wed Aug 17, 2022 12:53 am

» LANKA INDIAN OIL CORPORATION - Maharaja
by Maharaja Tue Aug 16, 2022 11:07 pm

» AAIC 100 = SCAP 16
by SamJay1974 Tue Aug 16, 2022 8:12 pm

» APLA - Very very undervalued share - Target Price
by Jana Tue Aug 16, 2022 7:07 pm

» HAYLEYS PLC (HAYL.N0000)
by Chamath1980 Tue Aug 16, 2022 5:07 pm

» New Bermuda Triangle
by rajini Tue Aug 16, 2022 2:17 pm

EXPERT CHRONICLE™

MARKET CHAT


CHRONICLE™ ANALYTICS


ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

LATEST TWEETS

You are not connected. Please login or register

FINANCIAL CHRONICLE™ » CHRONICLE™ ANALYTICS » Chart Pattern - Stochastic Oscillator

Chart Pattern - Stochastic Oscillator

+2
saifullah123
Quibit
6 posters

Go down  Message [Page 1 of 1]

1Chart Pattern - Stochastic Oscillator Empty Chart Pattern - Stochastic Oscillator Sun Apr 24, 2011 7:47 pm

Quibit


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

[You must be registered and logged in to see this image.]

This is yet again another momentum indicator used in technical analysis. The basic idea behind this indicator is that the closing price should close in the same direction as the prevailing trend, if the trend is to be continued. In other words, if the current trend is an uptrend the price should be closing near the highs of the price trend and if the current trend is a downtrend the price should be closing near the lows of the trading range.

This indicator is plotted within the range of 0 to 100 and if the indicator gives a value of above 80 the stock is considered to be overbought and if the value falls below 20 it is considered to be oversold. The overbought or oversold conditions will not always be followed by a trend reversal. However, it will alert the trader to look for further evidence that a reversal may be near.

Two lines are drawn for the Stochastic Oscillator and this indicator is generally calculated for a period of 14 days although the period could be adjusted to suit your requirements. The two lines are arrived at using the following formula:

[You must be registered and logged in to see this image.]

Caution

We stated earlier that a value of above 80 for the Stochastic Oscillator is considered overbought and a value of below 20 is considered oversold. However, it is important to note that these signals are not that effective when the market is trending upwards or downwards for a longer period of time.

Signals

Stochastic Oscillator gives two kinds of signals. The main signal is given when the %K line crosses the %D line. When the %K line crosses the %D line from below to above it is considered to be a bullish signal and it is a bearish signal if the %K line crosses the %D line from above to below.

[You must be registered and logged in to see this image.]

In the above graph the solid line is the %K line and the smoothed dotted line is the %D line.

The other signal is arrived at using the %D line (because it is smoothed and as such gives netter signals) and the actual movement of prices. When the %D line and the price line moves away from each other a signal is given that there is a weakening in the current trend.

More precisely, if the price line is moving upward and the %D line is moving downward this is a bearish signal and if the price of the security is moving downward and the %D line is moving upward that is considered to be a bullish signal. The signal is thought to be stronger if the %D line is situated in the overbought and oversold range of the Oscillator (i.e. above 80 or below 20). The signal is completed when the %K line crosses the %D line in the opposite direction of the price trend.

Find it a little bit confusing? Let's look at this in a graphical interpretation.

[You must be registered and logged in to see this image.]

If you look at point marked "1" on the above graph, the %D is sloping downwards whereas the price line is sloping upwards and as such gives a bearish signal to the investor.

On the other hand, if the %D line is upward sloping whereas the price line is sloping downwards and gives a bullish signal.

Sri Lanka Equity Analytics
www.srilnkaequity.com

saifullah123


Stock Trader

Its nice.I need more like this post.Thanks for share.

rijayasooriya

rijayasooriya
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

Another very useful article for technical analysis.+rep from me.

rijayasooriya

rijayasooriya
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

In DirectFN there are some parameters to set before get the chart,
%K parameters,
Time period--default is 5
Slowing----default is 3.


%D parameters,
Time periods---default is 3
Method----default is simple and there are several options---exponential,weighted,time series,triangular,variable,volume adjusted.

Could some one please explain those things...like how to set parameters...what is the importance of it....?
Thanks in advance.

rijayasooriya

rijayasooriya
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

It seems no one is answering.So I did my own research.

%k

Time period---It is the time period the analyser concentrate.Usually 14 days.
Slowing---It is for smoothing the %k.Usually 3.



%D

Time period--it is the time period of SIMPLE MOVING AVERAGE OF %K. Usually 3 days.
Method is simple as mentioned above.



Here is the original link,
http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:stochastic_oscillator

laki


Senior Equity Analytic
Senior Equity Analytic

kkk

day_lk


Equity Analytic
Equity Analytic

EXCELLENT POST.THANKS.

jehovah

jehovah
Equity Analytic
Equity Analytic

thanks study

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum