Stochastic trend indicator.

["Sentinel Trading" <rjbiii@xxxxxxxxx>]

Using stochastic as a trend indicator requires that it be modified. Several well
known charting programs package it in this fashion so it is nothing new. Usually
a 14 period %K and a 7 period %D is a good place to start. It uses two functions
as posted below. I'll send an ela if requested.Shorter periods produce a very
smooth oscillator and Using a longer %D than %k is also something worth looking
at it produces interesting crosses of K and D.
====================================================================
  {Function TAFastK}
Inputs: AvgLen(NumericSimple),Length(NumericSimple);

 Value1 = Lowest(Average(Low,AvgLen),Length);
 Value2 = Highest(Average(High,AvgLen),Length) - Value1;
 Value3 = Average(Close,AvgLen);

 if Value2 > 0 then
  TAFastK  = (Value3 - Value1) / Value2*100
else
 
 TAFastK = 0;
=====================================================================
   {Function TAFastD}
Inputs: AvgLen(NumericSimple),Length(NumericSimple);
       Vars: Factor(0);
 
 if CurrentBar <=1
 then begin
  Factor = 2 / (3 + 1);
  TAFastD = TAFastK(AVGLEN, LENGTH);
 end
 else
 TAFastD = TAFastD[1] + (Factor * (TAFastK(AVGLEN,LENGTH)  -TAFastD[1]));

=====================================================================
    {TAStoch Indicator}
   Input: AvgLen(13), LengthK(5), LengthD(9);

 Plot1 ( TAFastK(AVGLEN, LENGTHK),"TAK");
 Plot2  (TAFastD(AVGLEN, LENGTHD),"TAD");
 Plot3 (35,"BuyZone");
 Plot4 (80,"SellZone");


____________________Reply Separator____________________
Subject: Re: RJP < .a real deal ? i think not !
Author: cvinton
Date:  8/29/98 10:38 PM

TJ wrote:
> nothing more than a momentum crossover
> system with a stochastic like filter to keep you in the trend

Hmm... What exactly is a momentum crossover system? If it's analogous to
moving average crossovers, then the buy signal would be when, for
example, the 5-day momentum crosses over the 20-day momentum. Is that
the idea, or am out in left field here?

Hmm... Suggestions on how to use stochastics to keep you in the trend?
Perhaps use a larger time-frame and then make sure the value is within a
certain range?

Thanks all,

Cab