The 56 Point TA; Charts With an Attitude Message Board

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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude

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To: Doug R who wrote (23048)	11/15/1998 7:02:00 PM
From: Brian Lempel	Read Replies (3) of 79243

I am trying to verify the formula for a slow stochastic which I hope to use in a research project I am performing on TA. Here is what I have...some comments in bold For the 14 day slow stochastic that I plan to use, I should use a standard 3 day slowing period on the raw %K. To calculate this, I simply average the "Highest high" and "lowest low" values of the past 3 days and use these in the normal equation, (Today's close/lowest low)/(Highest high/lowest low). Wouldn't this provide for values greater than 100% in certain cases? Where is my logic flawed? To calculate the %D, I employ a 3 day EMA of the %K described above. Now, here comes a few crucial question. For the signals, should I only care about when the %K crosses back over either 20 or 80? I have read that you can use either line for the signals, but one book specified %K. Would this be the only condition, or should I determine a crossover as a prerequisite...? Also, the above signal would seem to limit the use of the %D. Would I even need to provide for its calculation? Thanks, Brian Lempel

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