Stochastic %K: Volume Weighted MovAvg

Abbreviation: %K VolWgtAvg
Category: Price Momentum Indicators: Smoothed

Input Parameters:

Name Range Default
High Price High
Low Price Low
Closing Price Close
Stochastic Periods Int >= 1 5
Volume Volume
VolWgtAvg Periods Int >= 1 5

 
Calculation:

VolWgtAvg(X, Volume, VolWgtAvg Periods)

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

Stoch%K represents Stochastic %K
VolWgtAvg represents Volume Weighted Moving Average

 
Discussion:

This indicator attempts to smooth the Stochastic %K indicator by calculating its moving average. Since it uses a volume weighted moving average (which gives more importance to those periods with higher volume relative to the other periods in the moving average’s time frame), the smoothing is influenced more by periods of relatively higher volume than by periods of relatively lower volume.
 

Was this article helpful?

Related Articles