Abbreviation: %K Avg
Category: Price Momentum Indicators: Smoothed
Input Parameters:
| Name | Range | Default |
| High Price | High | |
| Low Price | Low | |
| Closing Price | Low | |
| Stochastic Periods | Int >= 1 | 5 |
| Avg Periods | Int >= 1 | 5 |
Calculation:
Avg(X, Avg Periods)
where
X = Stoch%K(High Price, Low Price, Closing Price, Stochastic Periods)
Stoch%K represents Stochastic %K
Avg represents Simple Moving Average
Discussion:
This indicator attempts to smooth the Stochastic %K indicator by calculating its moving average. Since it uses a simple moving average (which gives equal importance to all the periods within the moving average’s time frame), this method of smoothing may cause more of a lag time than the exponential variant.