Stochastic %K: Simple MovAvg

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.
 

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