|
PureBytes Links
Trading Reference Links
|
To make a original stochastic, the H, L and C is needed for a symbol.
But for a spread there is only one value at each bar (there are no
separate highs, lows and closes). And you can not create synthetic H, L
and C by doing 3 spreads using the H and L and C of the two symbols.
A stochastic is simply comparing (as a percent) where, between the
highest high and the lowest low in the last x number of bars, the
current close is located. This same idea has been applied to the
stochastic of RSI (StochRSI) using the current value, the highest high
and the lowest low in the last x number of bars, of the RSI. (See
code-list, 7 Apr 2000 22:12, John Berentson). The same thing can be done
for a spread and the stochastic or RSI or other indicators can be
applied to the spread. The usefulness of these will be left to the
reader.
|