How is smoothing factor applied in Stochastic study


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Hi Pete,

I am trying to rewrite the stochastic using a programming language and I noticed that the TOS  stochastic indicator has a K Period and D Period of 10 each. They also have a Slowing period of 3.  I was looking  up the math behind the stochastic indicator and do not see a slowing period. https://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:stochastic_oscillator_fast_slow_and_full

Any ideas on the slowing period

Thanks

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Posted by (Questions: 4, Answers: 5)
Asked on September 30, 2018 3:34 pm
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Yes, it’s there. You will find it mentioned at the bottom of the section named “Fast, Slow or Full”

Full Stochastic Oscillator:

  • Full %K = Fast %K smoothed with X-period SMA
  • Full %D = X-period SMA of Full %K

 

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Posted by (Questions: 37, Answers: 4086)
Answered on September 30, 2018 4:34 pm
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Thanks Pete. So If I am understanding this correctly the “Slowing period” is applied to the %K (and its not the %D). Correct?

( at September 30, 2018 5:59 pm)
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Correct. Here it is taken straight from the built-in Stochastic study that comes with Thinkorswim:

plot FullK = MovingAverage(averageType, FastK, slowing_period);

( at September 30, 2018 6:25 pm)