George Lane developed the stochastic oscillator in the late 1950s. The math behind it is pretty remarkable for an indicator some 50 years old. There are actually two readings for a stochastic oscillator that are combined on a chart. They're referred to as the slow (%D) and the fast (%K) stochastics. The slow one is generally a moving average of the fast one.
The formulas for the slow and fast stochastic oscillators are as follows:
^ Fast Stochastic:
%K = 100 x (Recent Close - Lowest Low(n) * Highest High(n) -Lowest Low(n))
N = number of periods used in calculation ^ Slow Stochastic:
%D = 3-period moving average of %K
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