Stochastic and %R Williams

["Dimitris Tsokakis" <TSOKAKIS@xxxx>]

Let us see at first the obvious identity
 
A-B + B-C = A-C, or
 
(A-B)/(A-C) + (B-C)/(A-C) = 1, or
100*(B-C)/(A-C) = 100 - 100*<FONT 
size=2>(A-B)/(A-C) 
 
Replace 
A=HHV(High,14)
B=Close
C=LLV(Low,14)
and you will get the relation
 
100*[Close - LLV(Low,14)]/[HHV(High,14)-LLV(Low,14)] 
=
= 100 - 100*[HHV(High,14) - 
Close]/[HHV(High,14)-LLV(Low,14)] 
 
But, in the left part you will recognize Stochastic as in the 
right part Williams
Oscillator, in the final relation
 
Stochastic = 100 + Williams
 
They were presented as different indicators and , in fact, 
they are the same form,
the first in interval [0,100] and the second in [-100, 
0]
For verification, paste in your Indicator Builder the 
code
 
/* Stochastic*/
<FONT 
size=2>Graph0=100*(Close-LLV(Low,14))/(HHV(High,14)-LLV(Low,14));
/*Williams*/
Graph1=-100*(HHV(High,14) - 
Close)/(HHV(High,14)-LLV(Low,14));
 
It is the same graph in different scales.
 
Dimitris Tsokakis.
 
P. S.
Williams %R was developed by Larry Williams and Stochastic 
Oscillator was
developed by George C. Lane in the late 1950s.
Among the others, there is an article in TASC V.9:6(237-238) 
under the title
"Comparing Indicators : Stochastics %K versus Williams 
%R"
by Thom Hartle.
I have not read this article, so I do not know how can we 
compare the same thing in two
versions.
 
 
 
 
 
 
 
 
 
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