Is the Stochastic indicators working in Wealth Lab 6?
Author: fix
Creation Date: 9/1/2010 11:22 PM
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fix

#1
Hi,

I upgraded to Wealth Lab 6 last week when Fidelity rolled it out. I started playing with the stochastic indicators and it looks like the %D is being calculated incorrectly. I am using 14,3,3 as the stochastic parameters by doing the following:

Add a Buy at close
Added the following three conditions
Stochastic %K crosses above %D (14, 14, 3)
Stochastic %K is oversold (14, 20)
Stochastic %D is oversold (14, 3, 20)
(This is basically a buy at close when both %K and %D are below 20 and when %K crosses over %D, and this is not the full strategy, just to get the chart running)

Don't think I can post an image here, but here are the values I got from the chart when doing it over SPY daily:

Date, %K, %D
8/23, 5.8117, 42.9973
8/24, 6.8210, 38.8168
8/25, 18.5602, 37.6487
8/26, 10.5737, 36.3774
8/27, 29.5742, 37.1407
8/30, 15.9531, 35.8201
8/31, 16.7213, 38.8079

If I am correct, %D is the 3-day average of %K (based on my parameter), but as you can see, %K never went above 30 and %D never went below 30 - looks like %D is getting averaged over a longer period.
I'm just wondering if I'm doing something wrong here.

Thanks.
fix.
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Eugene

#2
Duplicate topic; please search before posting. tia.

Was there a change to Stochastic %D in Version 6?
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fix

#3
Will do next time. Thanks.
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