blueroadster
11-06-2014, 09:52 PM
I noticed that Investopedia and Stockcharts offer two different calculation formulas for %D which serves as the signal/trigger line for the STO indicator. Investopedia indicates that %D is calculated as:
%D = 100 X (H3/L3) (http://www.investopedia.com/articles/technical/073001.asp) or another words %D=100*(High Over Last 3 Days/Low Over Last 3 Days)
Stockcharts indicates that %D is calculated as:
%D = 3-day SMA of %K (http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:stoc hastic_oscillator_fast_slow_and_full) or another words %D=AVERAGE(%K Current Value, %K Yesterday's Value, %K Day Before Yesterday's Value)
Does anyone know which of these two formulas is correct based on the original STO formula calculation for %D? Comparing the formulas, it seems that investopedia offers a more realistic computation for %D since its computation is based off of high/low values (just like the calculation used for %K that is consistent on both sites) rather than stocksharts that uses an average of %K values.
%D = 100 X (H3/L3) (http://www.investopedia.com/articles/technical/073001.asp) or another words %D=100*(High Over Last 3 Days/Low Over Last 3 Days)
Stockcharts indicates that %D is calculated as:
%D = 3-day SMA of %K (http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:stoc hastic_oscillator_fast_slow_and_full) or another words %D=AVERAGE(%K Current Value, %K Yesterday's Value, %K Day Before Yesterday's Value)
Does anyone know which of these two formulas is correct based on the original STO formula calculation for %D? Comparing the formulas, it seems that investopedia offers a more realistic computation for %D since its computation is based off of high/low values (just like the calculation used for %K that is consistent on both sites) rather than stocksharts that uses an average of %K values.