Fast and Slow Stochastic

[tpatch]

New to eSignal. I'm trying to set up an advanced chart similar to a Bloomberg screen. It seems that eSignal and Bloomberg may calculate stochastic a little differently.

Why does eSignal show two %K variables in the study properties for stochastics?

Bloomberg has these defaults: %K=20, %D=5, %DS=5, %DSS=3.

Stochastic fast is %K/%D
Stochastic slow is %DS/%DSS

I guess eSignal does not have slow stochastic as a basic study. Can this formula be done? In regard to stochastic fast, I'm confused comparing Bloomberg's (%K, %D) vs. eSignal's (%K, %K, %D).

Can anyone offer any clarification or help to acheive what I described? Thanks.

Andy

[JayF]

Andy,

A "Slow Stochastic" is one where the %K is slowed by a factor of 3, while a "Fast Stochastic" is one where the %K is not slowed. In eSignal, the second %K is the slowing factor.

Fast Stoch. - 14,1,3 (%K, %K Slowing, %D)
Slow Stoch. - 14,3,3

I poked around Bloomberg's site and couldn't find any reference documentation on their studies, so I'm unsure how these compare.

[tpatch]

Thanks Jay. The slowing factor makes this a bit clearer.

Here's how Bloomberg defines their calculation:

[FONT=courier new]%K: An unsmoothed Relative Strength Indicator (RSI) of daily close.  The formula is as follows:

              current close – lowest price for period
%K = ---------------------------------------------------------------- * 100
       highest high price for period – lowest low price for period


%D: A moving average of %K for the period specified (n).  The formula is as follows:

            %K1 +%K2 + %K3+ …%Kn
%D = ------------------------------------
                     n


%DS: A moving average of %D for the period specified (n).  The formula is as follows:

          %D1 + %D2 + %D3 + …%Dn
%DS = --------------------------------
                    n


%DS-slow: A moving average of %DS for the period specified (n).  The formula is as follows:

              %DS1 + %DS2 + %DS3 + …%DSn
%DS-slow = -------------------------------
                          n[/FONT]

The chart I am trying to mimic is a 7-minute chart.

Defaults are:
%K = 20
%D = 5
%DS =5
%DSS =3

I use lower indicators %K/%D (fast stochastic) and %DS/%DSS (slow stochastic). There is also the option of %D/%DS which I do not use.

I'm trying to figure out how this would translate to eSignal. Appreciate any help.

Andy

[JayF]

For the %K/%D (fast) with the numbers you specified, type in 20,1,5 (%K, %K Slowing, %D) using the standard Stochastic that comes with eSignal.

For the %DS/%DSS (slow), we would need an EFS (eSignal Formula Script) file to be created for this. Attached is what I believe you are looking for.

[tpatch]

Much thanks Jay. I will be on the road for a few days but will give it a try next week and let you know.

[tpatch]

Thanks!

The EFS looks really good Jay. Thank you for the help!

[horus]

Jay,

How do you add a white line at 80 and 20 for the efs you provided?

Thanks,

David Dunne

[eSignal_JasonK]

Hello David,

The 80/20 lines are already in the formula, but they are set to black. You can change the color to white on lines 5 and 6 through the EFS editor (Tools-->EFS).