Stochastic %K: Exponential MovAvg Difference

Abbreviation: %K ExpAvg Diff
Category: Price Momentum Indicators: Smoothed

Input Parameters:

Name Range Default
High Price High
Low Price Low
Closing Price Close
Stochastic Periods Int >= 1 5
ExpAvg1 Periods Int >= 1 5
ExpAvg2 Periods Int >= 1 10

 
Calculation:

ExpAvg(X, ExpAvg1 Periods) – ExpAvg(X, ExpAvg2 Periods)

where
X = Stoch%K(High Price, Low Price, Closing Price, Stochastic Periods)

Stoch%K represents Stochastic %K
ExpAvg represents Exponential Moving Average

 
Discussion:

This indicator attempts to quantify movements in the Stochastic %K indicator by calculating the difference between two moving averages. Since it uses exponential moving averages (which give more importance to the most recent periods than to less recent periods), the indicator tends to focus more upon movement occurring in the most recent periods.
 

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