The Indicator DS_Stochastic presents an original Stochastic Oscillator (Stoch), in which aplying EMA smoothing.
The Indicator Fast Stochastic is removed on graph in the manner of two lines %K and %D.
The Formula of the calculation of the indicator Fast Stochastic is following:
DIF1(i) = EMA(Close(i) – MaxHigh(N), S);
DIF2(i) = EMA(MaxHigh(N) – MinLow(N), S);
%K(i) = 100*DIF1(i) / DIF2(i);
%D(i) = 100*EMA(DIF1(i), P) / EMA(DIF2(i), P);
Close(i) – a price of the closing of the current bar;
MaxHigh(N) – maximum High for N previous period;
MinLow(N) – minimum Low for N previous period;
EMA – exponential moving average;
N – a length of the range of the calculation High/Low;
S – a period of the smoothing for %K(i);
P – a period of the smoothing for %D(i).