stochosc

Stochastic oscillator

Syntax

percentKnD = stochosc(Data)

percentKnD = stochosc(___,Name,Value)

Description

percentKnD = stochosc(Data) calculates the stochastic oscillator.

percentKnD = stochosc(___,Name,Value) adds optional name-value pair arguments.

Examples

Calculate the Stochastic Oscillator for a Stock

Load the file SimulatedStock.mat, which provides a timetable (TMW) for financial data for TMW stock.

load SimulatedStock.mat
oscillator = stochosc(TMW,'NumPeriodsD',7,'NumPeriodsK',10,'Type','exponential');  
plot(oscillator.Time,oscillator.FastPercentK,oscillator.Time,oscillator.FastPercentD)
title('Stochastic Oscillator for TMW')

Input Arguments

Data — Data with high, low, open, close information

matrix | table | timetable

Data with high, low, open, close information, specified as a matrix, table, or timetable. For matrix input, Data is an M-by-3 matrix of high, low, and closing prices stored in the corresponding columns, respectively. Timetables and tables with M rows must contain variables named 'High', 'Low', and 'Close' (case insensitive).

Data Types: double | table | timetable

Name-Value Arguments

Specify optional pairs of arguments as Name1=Value1,...,NameN=ValueN, where Name is the argument name and Value is the corresponding value. Name-value arguments must appear after other arguments, but the order of the pairs does not matter.

Before R2021a, use commas to separate each name and value, and enclose Name in quotes.

Example: percentKnD = stochosc(TMW,'NumPeriodsD',10,'NumPeriodsK',3,'Type','exponential')

NumPeriodsK — Period difference for PercentK

10 (default) | positive integer

Period difference for PercentK, specified as the comma-separated pair consisting of 'NumPeriodsK' and a scalar positive integer.

Data Types: double

NumPeriodsD — Length of moving average in periods for PercentD

3 (default) | positive integer

Length of moving average in periods for PercentD, specified as the comma-separated pair consisting of 'NumPeriodsD' and a scalar positive integer.

Data Types: double

Type — Moving average method for PercentD calculation

'e' (exponential) (default) | character vector with values 'exponential' or 'triangular'

Moving average method for PercentD calculation, specified as the comma-separated pair consisting of 'Type' and a character vector with a value of:

• 'exponential' – Exponential moving average is a weighted moving average. Exponential moving averages reduce the lag by applying more weight to recent prices. For example, a 10 period exponential moving average weights the most recent price by 18.18%.

• 'triangular' – Triangular moving average is a double-smoothing of the data. The first simple moving average is calculated and then a second simple moving average is calculated on the first moving average with the same window size.

Data Types: char

Output Arguments

percentKnD — PercentK and PercentD

matrix | table | timetable

PercentK and PercentD, returned with the same number of rows (M) and type (matrix, table, or timetable) as the input Data.

More About

Stochastic Oscillator

The stochastic oscillator is a momentum indicator used in technical analysis to measure the level of a security's closing price relative to its price range over a specific period.

The stochastic oscillator calculates the Fast PercentK (F%K), Fast PercentD (F%D), Slow PercentK (S%K), and Slow PercentD (S%D) from the series of high, low, and closing stock prices.

By default, the stochastic oscillator is based on 10-period difference for PercentK and a 3-period exponential moving average for PercentD.

The the stochastic oscillator is primarily used to identify overbought or oversold conditions in the market, helping traders make informed decisions about buying or selling assets.

References

[1] Achelis, S. B. Technical Analysis from A to Z. Second Edition. McGraw-Hill, 1995, pp. 268–271.

Version History

Introduced before R2006a

R2023a: fints support removed for Data input argument

fints object support for the Data input argument is removed.

R2022b: Support for negative price data

The Data input accepts negative prices.