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Registered User
Joined: 11/29/2006
Posts: 181
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Hi,
I am Telechart and Blocks user. I use Worden Stochastics in Blocks and regular stochastics in Telechart. I notice that there are significant differences between the two (with same settings) and would like to know what they are.
Also, is there a way to create Worden stochastics as a custom indicator and PCF in Telechart? I am using simple, 40 period, 1 smooth.
Tx
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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The Worden Stochastic KB article described exactly how it is calculated (but is no longer available). It just returns the Percentile Rank of the most recent closing value of the parent when compared to all of the other closing values of the parent during the Period.
It's that simple and there really isn't a better way to describe it, but let's change the numbers from the example in the KB, call them prices and give them dates to hopefully provide some additional insight.
8/11 Close = 1
8/12 Close = 2
8/13 Close = 3.5
8/14 Close = 5
8/15 Close = 7
The Worden Stochastic would return 100. Assuming the regular Stochastic only uses closing prices (which we will do from now on in these examples) the Stochastic would also return 100.
Now let's re-arrange them.
8/11 Close = 1
8/12 Close = 7
8/13 Close = 3.5
8/14 Close = 5
8/15 Close = 2
Now the Worden Stochastic would return 25 while the regular Stochastic would return 16.7. It doesn't matter how the first four prices are arranged. If you have the same 5 numbers, the only order that matters is which number is last (and what's returned by each Stochastic when each of the Prices is last is listed in the KB example provided).
Now let's change one of the values to see how it affects things. We'll change the 7 to a 21.
8/11 Close = 1
8/12 Close = 21
8/13 Close = 3.5
8/14 Close = 5
8/15 Close = 2
This doesn't change the Worden Stochastic at all, it would still return 25 because the Rank of the most recent Price (2) hasn't changed. There is still one lower Price and 3 higher Prices and that's all that matters is where the last Price falls in the order when all of the other Prices during the Period are Ranked.
The regular Stochastic is dramatically affected however... it only returns 5 because the range of Price has increased to 20 and it is only 5% of the way up through the extremes ranges of Price during the Period. In a regular Stochastic, only the Lowest, Highest and most recent Price matter. You may wish to review the following for more information on a regular Stochastic.
Understanding Stochastics
The Worden Stochastic can be constructed as a Personal Criteria Formula or Custom Indicator as its construction is unambiguously described in the KB article (unlike BOP, MS and TSV) and the PCF language has all of the necessary functions for its calculation when its unsupported features are taken into account.
PCF Formula Descriptions
That said, the Worden Stochastic's status as a proprietary indicator means I cannot currently help you with its construction.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Registered User
Joined: 11/29/2006
Posts: 181
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Well explained Bruce, Thank you.
Unfortunately, my skills are not good enough to construct the indicator based on the KB article. It is too bad because I do find Worden stochastics more usable than regular.
Are there any plans to add Worden Stochastics to current portfolio of indicators in Telechart?
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Registered User
Joined: 1/2/2008
Posts: 41
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Look like the link is broken, could you please let me knok where to find this information related to the Worden Stochastics
The Worden Stochastic KB article describes exactly how it is calculated. It just returns the Percentile Rank of the most recent closing value of the parent when compared to all of the other closing values of the parent during the Period.
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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Yes, the link is broken (the Knowledge Base is no longer available), but I explain the calculation in great detail in the paragraphs that follow the one you quoted.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Registered User
Joined: 10/4/2014
Posts: 3
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Here is a PCF-based percentile ranking stochastic. It does NOT reproduce the proprietary Worden Stochastics, but I like it better than the more orthodox stochastics:
(
(100*((-1)/11)*((c>=c11)+(c>=c10)+(c>=c9)+(c>=c8)+(c>=c7)+(c>=c6)+(c>=c5)+(c>=c4)+(c>=c3)+(c>=c2)+(c>=c1)))
+
(100*((-1)/11)*((c1>=c12)+(c1>=c11)+(c1>=c10)+(c1>=c9)+(c1>=c8)+(c1>=c7)+(c1>=c6)+(c1>=c5)+(c1>=c4)+(c1>=c3)+(c1>=c2)))
+
(100*((-1)/11)*((c2>=c12)+(c2>=c11)+(c2>=c10)+(c2>=c9)+(c2>=c8)+(c2>=c7)+(c2>=c6)+(c2>=c5)+(c2>=c4)+(c2>=c3)+(c2>=c13)))
)/3
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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Thank you for taking the time to make and post your formula. It is possible to modify it slightly and get it to match the Simple Worden Stochastic 12,3 %K.
50 * (SGN(C - C1) + SGN(C - C2) + SGN(C - C3) + SGN(C - C4) + SGN(C - C5) + SGN(C - C6) + SGN(C - C7) + SGN(C - C8) + SGN(C - C9) + SGN(C - C10) + SGN(C - C11) + SGN(C1- C2) + SGN(C1 - C3) + SGN(C1 - C4) + SGN(C1 - C5) + SGN(C1 - C6) + SGN(C1 - C7) + SGN(C1 - C8) + SGN(C1 - C9) + SGN(C1 - C10) + SGN(C1 - C11) + SGN(C1 - C12) + SGN(C2- C3) + SGN(C2 - C4) + SGN(C2 - C5) + SGN(C2 - C6) + SGN(C2 - C7) + SGN(C2 - C8) + SGN(C2 - C9) + SGN(C2 - C10) + SGN(C2 - C11) + SGN(C2 - C12) + SGN(C2 - C13)) / 33 + 50
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Registered User
Joined: 10/4/2014
Posts: 3
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Thanks, Bruce. The SGN-based formula almost matches WS 12 % K 3, but diverges a bit around certain changes in direction. For example, look at $SPY on 8/18/2015 and 7/10/2015. If anything, the PCF you provided seems a bit more sensitive to change.
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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My formula does match the Worden Stochastic exactly in TC2000 version 16. It does not match the Worden Stochastic exactly in TC2000 version 12.4 because of a bug in the way the indicator is calculated in TC2000 version 12.4.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Registered User
Joined: 9/17/2016
Posts: 1
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I really, really like the Worden Stochastics. I would like to create alerts both bearish where the Worden Stochastic = 100 yesterday and less than 100 today. Similarly a bullish alert when the Worden Stochastic = 0 yesterday and greater than 0 today.. I have difficulty in that I am not able to get a return value when I use the label WStoch (12.3) = 100. Instead, I get the dreaded "formula error". I would be grateful fo any guidance!
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Administration
Joined: 9/30/2004
Posts: 9,187
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You can't access the Worden Stochastic in the PCF language, but you can create conditions from the indicator on the chart. For 100 yesterday and less than 100 today, set the condtion to Crossing Down Value and the value to 99. For 0 yesterday and greater than 0 today, select Crossing Up Value and set the value to 1.
http://support.tc2000.com/m/33348/l/341826-how-to-create-a-scan-condition-for-an-indicator-crossing-a-certain-value-and-save-it-to-the-condition-library
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