NexusFi: Find Your Edge


Home Menu

 





Formula for Slow Stochastic


Discussion in Platforms and Indicators

Updated
      Top Posters
    1. looks_one TrendTraderBH with 6 posts (1 thanks)
    2. looks_two matthew28 with 2 posts (1 thanks)
    3. looks_3 drm7 with 1 posts (1 thanks)
    4. looks_4 Quick Summary with 1 posts (0 thanks)
      Best Posters
    1. looks_one drm7 with 1 thanks per post
    2. looks_two MONICAP with 1 thanks per post
    3. looks_3 matthew28 with 0.5 thanks per post
    4. looks_4 TrendTraderBH with 0.2 thanks per post
    1. trending_up 3,672 views
    2. thumb_up 4 thanks given
    3. group 3 followers
    1. forum 8 posts
    2. attach_file 5 attachments




 
Search this Thread
  #1 (permalink)
 TrendTraderBH 
Detroit, Michigan
 
Experience: Beginner
Platform: Ninja Trader
Trading: Futures
Posts: 319 since Nov 2011
Thanks Given: 598
Thanks Received: 303

I've spent some time researching this topic but cannot find what I'm looking for. NT standard stochastic indicators (and 3rd party) are not it either.

Looking for the formula for Slow Stochastic indicator mostly used in stock trading but very much relevant for futures (as I've seen it on certain futures platforms).

FYI, the standard NT stochastic indicator uses K, D, and smooth.

The slow stochastic indicator uses K, D, and length (yes they are different).

Attached is a screenshot for the slow stochastic indicator with settings that I seek the formula for that I could then program for NT use.

Thanks in advance.


Attached Thumbnails
Click image for larger version

Name:	stocks - slow stochastic setting.PNG
Views:	329
Size:	157.0 KB
ID:	239228  
Started this thread Reply With Quote

Can you help answer these questions
from other members on NexusFi?
SEC Advisory Committee Backs Tokenized Securities Exempt …
Traders Hideout
Zytrade: Devin Brady, CEO - Ask Me Anything (AMA)
Brokers
February NFP Preview -- Why This Mornings Jobs Number Co …
Traders Hideout
The 50/50 Paradox: Peace and Invasion Each at 20% -- Ira …
Prediction Markets & Event Contracts
Post-Summit Scorecard: $36M in May 15 Bets Settle Near-Z …
Prediction Markets & Event Contracts
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Sober Journey With S&P
22 thanks
2026 Jlab journal
10 thanks
Trying to learn Volume and price action correlation
8 thanks
Algo automated / semi-automated trading anyone?
6 thanks
Lady Vols Primer: Trading Volatility Journal
5 thanks
  #3 (permalink)
 TrendTraderBH 
Detroit, Michigan
 
Experience: Beginner
Platform: Ninja Trader
Trading: Futures
Posts: 319 since Nov 2011
Thanks Given: 598
Thanks Received: 303


Bump bump....can someone lend a hand?


Started this thread Reply With Quote
  #4 (permalink)
drm7
Virginia
 
Posts: 49 since Oct 2010
Thanks Given: 194
Thanks Received: 47

I have ZERO ability to code, but this link should give you enough information. Breaks down the formula step by step.

Stochastic Oscillator [ChartSchool]


Reply With Quote
Thanked by:
  #5 (permalink)
 TrendTraderBH 
Detroit, Michigan
 
Experience: Beginner
Platform: Ninja Trader
Trading: Futures
Posts: 319 since Nov 2011
Thanks Given: 598
Thanks Received: 303

My NT programmer checked @drm7 link and the formulas are the same as NT's stochastic formulas (Stochastic Fast and Stochastic) so he doesn't know what to make of it.

Can anyone else help to find the correct slow stochastic formula for the following attributes:

Length = 14 (this is NOT smooth BUT length)
%K Period = 3
%D Period = 5

These attributes are in the Yahoo Finance screenshot in the first post of this thread.

Any help would be greatly appreciated.


Started this thread Reply With Quote
  #6 (permalink)
 
matthew28's Avatar
 matthew28 
United Kingdom
Elite_Member
 
Experience: Intermediate
Platform: Topstep X
Broker: Topstep Live Funded
Trading: US Equity Index Futures
Frequency: Many times daily
Duration: Minutes
Posts: 1,250 since Sep 2013
Thanks Given: 3,517
Thanks Received: 2,535

@TrendTraderBH
Is this right?
Slow Stochastic formula from Computer Analysis of the Futures Market by Charles Le Beau and David Lucas

Edit: probably not, on closer reading I see it mentions a smoothing constant.


Attached Thumbnails
Click image for larger version

Name:	IMG00002-20170808-1625 (2).jpg
Views:	292
Size:	310.2 KB
ID:	239716   Click image for larger version

Name:	IMG00003-20170808-1626 (2).jpg
Views:	285
Size:	356.1 KB
ID:	239717  
Reply With Quote
Thanked by:
  #7 (permalink)
 TrendTraderBH 
Detroit, Michigan
 
Experience: Beginner
Platform: Ninja Trader
Trading: Futures
Posts: 319 since Nov 2011
Thanks Given: 598
Thanks Received: 303

Not sure why this is so difficult. I sent a message to Yahoo Finance to see if they can give me the underlying formula but not sure I will get a response.

Funny just as I wrote the above checked and got an answer from Yahoo Finance - sent to my programmer to see if it contains the answer. Here is Yahoo Finance's response below and also towards the end as it pertains to the "Length" parameter:



Hi -

A stochastic oscillator is a momentum indicator that compares where a security's price closed relative to its price range, for a given period. Closing levels that are consistently near the top of the range indicate accumulation (also known as buying pressure): this can be interpreted to mean the security is overbought. Closing levels near the bottom of the range indicate distribution (also known as selling pressure): you can interpret this to mean the security is oversold.

In Yahoo Finance charts, you can use 3 types of stochastic indicator: Fast, Slow, and Full Stochastic.

Fast Stochastic

The Fast Stochastic plots two indicator lines: the %K and the %D.

%K shows the current closing price as a percentage of the high-low range, for the given period (n). Because %K is a percentage it will always be between 0 and 100.
%D is a 3-period simple moving average of %K. This is usually plotted alongside %K to act as a signal or trigger line.

Formulas and definitions

%K = 100 X ([Recent Close - Low (n)] / High (n) - Low (n)])

Recent Close = the security's closing price.
Low(n) = the lowest low in n periods.
High(n) = the highest high in n periods.
n = The number of trading periods. If the trading periods are measured in days, the n value is the number of days.
%D = 3 - Period Simple Moving Average of %K.

Slow Stochastic

Based-on the fast stochastic, the Slow Stochastic takes the %K plotted by the fast stochastic and applies a 3-period simple moving average to it to form the Slow Stochastic's %K. Identical to the Fast Stochastic's formula, the Slow Stochastic's %D is a 3-period simple moving average of its %K.

Formulas and definitions

%K (slow) = 3-period SMA of %K (fast)
%D (slow) = 3-period SMA of %K (slow)

Full Stochastic

The full stochastic is customizable. It allows you to apply an n-period (any number you like) simple moving average to the %K for smoothing and an n-period simple moving average to the %D. With it you can plot a Fast, Slow, or customized Stochastic Oscillator.

Formulas and definitions

%K (full) = n-period SMA of %K (fast)
%D (full) = n-period SMA of %K (full)

Stochastic indicators in Yahoo Finance charts

In Yahoo Finance charts, you can change 3 important parameters for a stochastic indicator:

Length - This is the period of the stochastic oscillator. Depending on the chart timeframe, the period differs in meaning. In other words it could be an intraday timeframe, or days, weeks, or months.

%K Period - This controls the smoothing of %K. This value is the period that's used in the Simple Moving Average applied to the %K.

For a Fast Stochastic Oscillator, leave %K Period at 1.
To change to a Slow Stochastic, raise %K Period to 3.

%D Periods - The number of time periods used when calculating an SMA of %K.

It's typical to leave this value at 3. Raising it will produce more smoothing in %D.


Started this thread Reply With Quote
Thanked by:
  #8 (permalink)
 TrendTraderBH 
Detroit, Michigan
 
Experience: Beginner
Platform: Ninja Trader
Trading: Futures
Posts: 319 since Nov 2011
Thanks Given: 598
Thanks Received: 303

The following screenshots are examples of Stochastics on Yahoo charts. They recently changed those Stochastics and I'm looking again for the formula for this specific Stochastics. I reached out to Yahoo and they were unhelpful. Can anyone help figure out the formula?




Started this thread Reply With Quote
  #9 (permalink)
 TrendTraderBH 
Detroit, Michigan
 
Experience: Beginner
Platform: Ninja Trader
Trading: Futures
Posts: 319 since Nov 2011
Thanks Given: 598
Thanks Received: 303

I thought the same but it's not the solution. The stochastics formula on the Yahoo charts calculates differently that any stochastics indicator I've seen so far on NT.

Wondering if there is anyway to match a stochastics indicator setting to the output on the Yahoo chart stochastics.




MONICAP View Post
Just change the settings.
Perios D 3
Paeriod K 14
Smooths 5




Started this thread Reply With Quote




Last Updated on March 1, 2024


© 2026 NexusFi®, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Downloads - Top
no new posts