MetaStock Stochastic Oscillator Function

by David Jenyns on May 26, 2007

MetaStock Stochastic Oscillator Function
The Stochastic Oscillator is another popular oscillator that is widely used. The premise behind its calculation is that when a security is rising, it tends to close near the high of a recent period and a falling security closes near its low. So, the Stochastic actually measures the price of a security relative to the high/low range over a set period of time. Thus it provides an indication of where the security is presently trading within its recent trading range. CALCULATION The formula for the Stochastic Oscillator (K) is:

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