slowkd慢速随机指标Slowkdslowrandomindex.doc

slowkd 慢速随机指标(Slowkd slow random index)
Stochastic index
Random index is one of my favorite technical indicators. Ever made up of%K and%D, %D is more important because%D is stable after 2 smoothing operations.
The random index charts are usually placed below the price chart, with readings between 0-100. Overbought boundaries usually set in 70~80, is set to 20-30 between oversold boundaries. I usually use the limit of 25 for 75 as overbought oversold, boundaries, so can provide more signal. A stochastic index is a measure of the relative position of the nearest closing price in the price range. In theory, if the price is on the rise, the closing price is usually close to the highest price. On the contrary, in the downward trend, prices tend to be near the lowest price. With the market strong momentum, the closing price to the highest price will gradually close, the stochastic indicator rose. When the trend is strongest, the price will be at the highest possible price, and the random readings will approach 100. As the price rally slows, the closing price is slowly moving away from the highest price and the readings begin to fall. Please note that even if the rally continues, the closing price continued to rise, but as long as the closing price slowly from the high kinetic energy will decrease (or in other words, although the price continued to rise, but the rise slowed)- this